Crypto Markets Face ETF Redemptions and Heightened Regulatory Scrutiny
Crypto Markets Face ETF Redemptions and Heightened Regulatory Scrutiny
The cryptocurrency market is currently experiencing significant headwinds, with US spot Bitcoin and Ether ETFs shedding over $1 billion in redemptions, reversing previous inflows and signaling a cautious sentiment among investors. Concurrently, regulatory bodies globally are increasing their oversight. The UK's Financial Conduct Authority is preparing to open a new licensing gateway for crypto firms, mandating authorization by late 2027. Adding to the regulatory landscape, South Korea's top court has ruled that Bitcoin held in exchange accounts can be legally seized, aligning with US and EU enforcement practices and highlighting the increasing legal challenges and risks for digital assets.
After a brief January rebound, US spot Bitcoin and Ether ETFs saw heavy redemptions, extending a cautious trend that began after October’s market reset.
UK crypto businesses must secure FCA authorization well before the crypto regime starts in October 2027 or face transitional restrictions on new services.
The ruling confirms that Bitcoin in South Korean exchange accounts is an “object of seizure” under criminal law, aligning Seoul with US and EU enforcement practices.