Head of South Korea’s Financial Supervisory Service to Meet SEC Chair Gary Gensler
The head of South Korea’s Financial Supervisory Service (FSS), Lee Bok-hyun, plans to meet with SEC Chair Gary Gensler in January to discuss crypto regulation. This information was reported by South Korean news outlet Chosunbiz. The purpose of the meeting is to discuss the current state of the cryptocurrency market and the direction of supervisory policies that will affect the industry. Another major topic of discussion is expected to be the standards used by the United States to determine the security nature of virtual assets.
Regulatory Cooperation and Consumer Protections
Regulatory cooperation between countries is crucial for borderless virtual assets, according to an unnamed South Korean government official. South Korea has introduced digital asset legislation this year to enhance consumer protections for cryptocurrency investors, which will take effect in July 2024. Approximately a quarter of adults aged 18 to 60 in South Korea engaged in cryptocurrency investments during a six-month period, making the country a significant market for cryptocurrency trading.
Enhanced Consumer Protections and Fraud Concerns
The enhanced consumer protections are being implemented in response to a rise in fraud within South Korea’s crypto community. The largely unregulated crypto space has prompted regulators in the country to take action. In 2022, a collapse in Do Kwon’s Terra-Luna ecosystem caused a $40 billion crypto market crash. Do Kwon was arrested in Montenegro and sentenced to four months in prison for using falsified travel documents. However, the Montenegro Appeals Court recently rejected a decision to extradite Kwon to either the U.S. or South Korea, citing procedural issues.
Hot Take: Gary Gensler’s Meeting with South Korean Financial Regulator Signals International Cooperation on Crypto Regulation
The upcoming meeting between SEC Chair Gary Gensler and Lee Bok-hyun, head of South Korea’s Financial Supervisory Service, signifies the importance of international regulatory cooperation in the crypto industry. As the cryptocurrency market continues to grow globally, it becomes crucial for regulators to collaborate and establish consistent standards. This meeting will provide an opportunity for both parties to discuss the current state of the market and explore potential supervisory policies. Additionally, the discussion on determining the security nature of virtual assets will be key in shaping future regulations. With South Korea implementing enhanced consumer protections and addressing fraud concerns, this meeting highlights the global effort to create a safer and more transparent crypto ecosystem.
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