South Korea's Financial Services Commission has banned new listings of leveraged ETFs tracking individual stocks such as Samsung Electronics and SK Hynix, citing risk concerns. The regulator also prohibited advertising and will triple basic margin requirements from 10 million won to 30 million won ($22,300) starting in August, accepting only cash as collateral. Brokerage firms must now limit premium/discount management to 2%, and mandatory investor education has been extended to three hours.
KOSPI tumbles as semiconductor stocks plunge
The crackdown comes amid severe volatility in the KOSPI index, which fell 6.72% on the day, with SK Hynix dropping 11.5%. The sell-off extended a challenging period for Korean equities, coinciding with regulatory moves against leveraged semiconductor ETFs. This market stress could dampen risk appetite among Korean crypto traders, who often correlate equity and digital asset sentiment.
Crypto exchanges tighten token listings
Bithumb and Upbit announced they will delist multiple tokens on August 18, including GRACY, SPURS, ZTX, WIKEN, and FITFI, due to unresolved designation concerns. Bithumb also flagged six tokens—AZIT, CUDIS, FANC, TEMCO, EGG, and STAT—as cautionary assets due to insufficient combined market capitalization and trading volume. Deposits for these tokens are suspended immediately, with final decisions expected in October.
RWA sector leads crypto market gains
Among crypto sectors, Real-World Assets (RWA) surged 6.40% in 24 hours, driven by Ondo Finance (ONDO) soaring 15.92% and Centrifuge (CFG) rising 2.87%, per SoSoValue data. The broad market showed narrow swings, with Bitcoin inching above $65,000 before retreating and Ethereum reclaiming $1,900. DeFi and PayFi sectors also posted mild gains, while SocialFi declined over 2%, highlighting rotation into tangible-asset narratives in Asia-focused trading sessions.
Bank of Korea raises rates for first time in 3.5 years
The Bank of Korea raised its policy rate by 25 basis points to 2.75% on July 16, marking its first increase since January 2023. The hike aims to curb persistent inflation and could strengthen the won. Tighter monetary conditions may pressure local crypto markets by increasing borrowing costs and reducing liquidity for speculative assets.
Whale movements and accumulation
A dormant Bitcoin whale transferred 5,908 BTC ($382.67 million) to a new wallet after eight years of inactivity, originally received at $16,865 per BTC, delivering a gain of over $283 million. Meanwhile, an entity tracked by on-chain analyst Ai Yi has accumulated 49,407 ETH and 300 WBTC worth over $103 million since July, with an average cost of $1,705 for ETH and $63,027 for WBTC, showing an unrealized profit of $11.1 million. This large-scale accumulation on Binance points to bullish positioning among Asian or Asia-linked large traders.