South Korea Urges Asset Managers to Limit Exposure to Crypto Stock Like  Coinbase,MicroStrategy

South Korea’s top financial watchdog has issued informal guidance urging local asset managers to scale back their investments in crypto-related stocks, according to a Korean Herald report.

The Financial Supervisory Service (FSS) specifically told several firms to reduce exposure to U.S.-listed companies like Coinbase (COIN) and Strategy (MSTR), Michael Saylor’s Bitcoin-heavy investment firm.

The warning, delivered verbally, reflects the FSS’s continued adherence to its 2017 policy that bars regulated financial institutions from holding or acquiring equity positions tied to digital assets. This includes both direct ETF exposure and indirect crypto equity holdings.

Mixed signals amid broader policy reevaluation

The timing of the guidance has sparked confusion, as it follows recent reports suggesting that the FSS was considering loosening some restrictions related to crypto trading. The regulator’s stance appears contradictory, especially amid growing global regulatory clarity and the rise of institutional crypto exposure in markets like the U.S.

READ MORE:

U.S. Dollar Comes Onchain as GENIUS Act Ushers in Digital Era

An unnamed FSS official told the Korean Herald that despite evolving international frameworks, domestic institutions must still comply with current South Korean rules. The statement reinforces that regulatory reform, while under discussion, remains incomplete and unenforceable until formally revised.

South Korea’s mixed messaging could stall institutional momentum just as crypto assets and equities tied to the sector see increased global adoption.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.