South Korea’s FSS Governor Plans to Discuss Crypto Regulation with SEC Chair Gary Gensler
South Korea’s Financial Supervisory Service (FSS) Governor, Lee Bok-hyun, has announced his intention to visit the United States in 2024 to engage in discussions on important regulatory issues, including those related to the cryptocurrency industry.
During his visit, Governor Lee plans to meet with the Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, to specifically discuss virtual asset issues and the approval of spot bitcoin exchange-traded funds (ETFs).
Highlighting the impact of SEC policies globally, Governor Lee emphasized the need for a meeting and discussion between himself and Chairman Gensler this year.
SEC Approves Spot Bitcoin ETFs
On January 10, after years of rejections, the SEC approved 11 spot bitcoin exchange-traded funds (ETFs). The following day, ten of these ETFs, including Grayscale’s Bitcoin Trust (GBTC) and BlackRock’s Ishares Bitcoin Trust (IBIT), began trading.
South Korea Yet to Approve Spot Bitcoin ETFs
In South Korea, the launch of spot bitcoin ETFs has not been approved as virtual assets are not currently recognized as financial products. The Korean Capital Market Act requires ETFs to track underlying assets such as stocks and bonds, making the introduction of spot bitcoin ETFs a violation of the act.
Hot Take: South Korea Seeks to Align Crypto Regulation with the U.S.
South Korea’s FSS Governor’s visit to the U.S. to discuss crypto regulation with the SEC Chairman demonstrates the country’s intent to align its policies with global standards. With the SEC’s recent approval of spot bitcoin ETFs, South Korea seeks to explore the regulatory implications and potentially develop a framework for their own approval. By engaging in dialogue with the SEC, South Korea aims to understand the impact of its policies on the global market and ensure they are in line with international best practices.
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