Financial Authorities to Respond Firmly to Offshore Perpetual Futures Impacting Domestic Stock Market

The financial authorities have decided to respond firmly, including reporting to investigative agencies, if perpetual futures traded on overseas virtual asset exchanges affect the domestic stock market. On the 16th, the Financial Services Commission, the Financial Intelligence Unit (FIU), and the Financial Supervisory Service announced through a guide on 'Precautions for Perpetual Futures Users' that they will closely monitor the status of products linked to the Korean stock market launched by offshore platform operators and their impact on the domestic market. The financial authorities pointed out illegal business practices, such as inducing new sign-ups through referral codes and charging fees, and plan to respond firmly if related offshore products affect the domestic stock market. Currently, they plan to request cooperation from major offshore platform operators supporting perpetual futures trading to ensure compliance with domestic laws. Perpetual futures have no expiration date and are traded 24/7, and if structured to be 150 times linked to the Korean stock index, even a 0.66% movement in the index could lead to forced liquidation of the entire investment. The financial authorities explained that offshore digital asset platforms are not subject to domestic laws, making legal resolution difficult.

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