# South Korea’s Financial Supervisory Service (FSS) Tightens Restrictions on Crypto Investments
## Overview
South Korea’s Financial Supervisory Service (FSS) is taking a firm stance on cryptocurrency investments, urging domestic asset managers to adjust their exchange-traded funds (ETFs). Recent developments indicate that the regulatory body has mandated investment firms to decrease their holdings in companies linked to cryptocurrencies such as Coinbase and MicroStrategy.
### Strengthening Regulations
Amid the growing popularity of digital assets, the FSS has intensified its regulatory oversight to mitigate the risks associated with crypto investments. By requiring local asset managers to rebalance their ETF portfolios, the watchdog aims to address potential vulnerabilities in the market.
### Focused Approach
Emphasizing the need for prudent investment practices, the FSS’s directive underscores the significance of managing exposure to cryptocurrency-related businesses. By limiting the presence of companies like Coinbase and MicroStrategy in ETFs, the regulatory authority seeks to enhance financial stability and safeguard investors’ interests.
## Conclusion
South Korea’s Financial Supervisory Service’s latest directive to reduce exposure to Coinbase and MicroStrategy stocks underscores its commitment to regulating crypto investments effectively. By actively managing ETF holdings with cryptocurrency ties, the regulatory body aims to promote a secure and sustainable investment environment in the country.
*This article was originally published on CoinGape.*