South Korea Clamps Down: Asset Managers Ordered to Slash Crypto ETF Exposure

Regulators just dropped the hammer—again. South Korea's Financial Services Commission (FSA) is forcing asset managers to dial back crypto holdings in ETFs, citing 'investor protection.' Because nothing protects returns like limiting access to the best-performing asset class of the decade.

Behind the crackdown: A familiar mix of bureaucratic jitters and legacy finance turf wars. The FSA's memo warns of 'volatility risks,' ignoring the fact that traditional ETFs tracking oil or meme stocks swing harder than a drunk sailor.

Local crypto markets barely flinched—traders know the drill. Every restriction eventually fuels more creative workarounds (see: Hong Kong's Bitcoin ETFs hitting $12B AUM days after launch).

Bottom line: When regulators play whack-a-mole with crypto, capital just finds another hole. Bonus irony? These are the same institutions still nursing losses from their 'safe' commercial real estate ETFs.