On Wednesday, the Financial Services Commission of Korea issued the directive that bans securities firms from intermediating bitcoin futures transactions. Financial regulator doesn’t recognize bitcoin as an underlying asset of derivative products so bitcoin cannot be a subject for futures trading.
Two companies, eBest Investment & Securities Co. and Shinhan Financial Investment Co. planned to introduce bitcoin futures trading, but now they canceled seminars for bitcoin futures investors slated for the 14th and the 15th, respectively.
It is the first time for the South Korean authorities to ban trading a specific item. It seems that they made such decision worrying about if it gets out of control as they haven’t taken a position on cryptocurrency.
The Financial Services Commission of Korea statement
The news comes as Futures Industry Association (FIA) chief executive Walt Lukken said in an open letter to the Commodity Futures Trading Commission that FIA members are concerned that they will have to pay for any outstanding contracts caused by price changes in bitcoin, rather than the groups which are actually selling the futures products.