South Korean Financial Regulator Signals Interest in Bitcoin ETFs
Speculation about the South Korean government reconsidering its stance on spot Bitcoin exchange-traded funds (ETFs) seems to be true. The country’s financial regulator, the Financial Supervisory Service (FSS), has officially expressed interest in these products. According to a report from local media outlet Hankyung, the FSS intends to meet with the United States Securities and Exchange Commission (SEC) to discuss the crypto industry and spot Bitcoin ETFs.
FSS to Meet U.S. SEC for Crypto ETF Talk
The FSS chief, Lee Bok-hyun, is expected to visit the U.S. later this year to meet with SEC chair Gary Gensler. During a recent announcement of his business plans for 2024, Bok-hyun stated that he and Gensler would discuss Korea discount measures like spot Bitcoin ETFs and corporate value-up programs.
“I will meet with SEC Chairman Gary Gensler (this year), and there are areas where we will focus on issues such as virtual asset issues and Bitcoin spot ETF. Now, the impact of SEC policy on the world, this is important,” he stated.
A Possible U-Turn
This announcement from Director Bok-hyun comes shortly after the SEC approved the first wave of spot Bitcoin ETFs in the U.S. The South Korean government initially maintained its ban on crypto ETFs despite this approval. However, there have been indications of a possible change in stance. Sung Tae-yoon, the recently appointed Presidential Chief of Staff, urged the South Korean Financial Services Commission (FSC) to align its crypto viewpoint with international standards by allowing investment vehicles like ETFs.
If South Korea decides to allow Bitcoin ETFs, investment giants in the country believe that the demand for these products would be significant.
Hot Take: South Korea’s Potential Shift on Bitcoin ETFs
The South Korean government’s interest in discussing spot Bitcoin exchange-traded funds (ETFs) with the United States Securities and Exchange Commission (SEC) indicates a possible shift in its stance. This comes after the SEC approved the first wave of Bitcoin ETFs in the U.S. While South Korea initially maintained its ban on crypto ETFs, there have been calls to align its viewpoint with international standards. If South Korea decides to allow Bitcoin ETFs, it could have a significant impact on the adoption and popularity of these investment products in the country.
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