The South Korean authorities banned the trading of bitcoin derivatives

The South Korean authorities banned the trading of bitcoin derivatives

Regulators in South Korea banned trade futures, and other derivatives based on bitcoin.

According to Korea Herald, a new Directive of the financial services Commission has forced several companies, namely, eBest Investment & Securities and Shinhan Financial Investment, to dispense with the holding of seminars on work with bitcoin futures. The seminars were to be held early next week.

Investments in derivative instruments, developed foreign stock exchanges are also prohibited.

It is worth noting that just two weeks ago the chief of service of financial supervision, One the Star-Shik said that the regulator does not intend to regulate bitcoin trading, noting that the country is considering bitcoin as a speculative product, not a currency or method of payment.

South Korea has decided to go on a path different from the US, where the two largest exchange, CME Group and CBOE are preparing to launch bitcoin futures in the near future. It is expected that the CBOE will begin trading its bitcoin futures on Sunday, CME – closer to the middle of the week.

The head of the CME Leo Melamed argued previously that the launch of futures contracts can help in regulating the price of bitcoin.

In an open letter addressed to the Commission on trade commodity futures (CFTC) and published yesterday, the industry trade group, the FIA expressed concern of its members regarding the expected launch and also the process that led to the approval of bitcoin futures.

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