Ban on Bitcoin Spot ETF Violates the Principle of Legalism in Regulation
It is important to point out that the U.S. Securities and Exchange Commission (SEC)’s recent approval of Bitcoin spot ETPs (Exchange-Traded Products) submitted by 11 asset management companies on the 11th calls into question the Financial Services Commission (FSC)’s repeated stance against Bitcoin spot ETFs, which violates the principle of legalism in regulation, as stipulated in Article 4, Clause 1 of the Basic Administrative Regulations Act.
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Attorney Pureun “Ian” Hong from Descent Law Firm also pointed out that ▶ there is no clear legal basis under the current Capital Markets Act to prohibit a Bitcoin spot ETF, ▶ the FSC is aware of this and, while claiming there is a potential violation of the Capital Markets Act, has not presented specific provisions, ▶ and that it is highly problematic that the FSC has banned Bitcoin ETF brokerage based on arbitrary judgments by an administrative body rather than legal grounds.
