South Korea Looks to the US for Guidance on Spot Bitcoin ETFs
South Korea’s Financial Supervisory Service (FSS) is seeking guidance from the United States on spot Bitcoin exchange-traded funds (ETFs). FSS chief Lee Bok-Hyun announced plans to engage with major financial markets, particularly New York, to discuss the South Korean financial landscape, including spot Bitcoin ETFs.
This move comes after the US Securities and Exchange Commission’s approval of the first spot BTC ETFs in January. The SEC had previously rejected applications for spot BTC ETFs due to concerns about market manipulation risks. However, they reversed their stance and approved 11 spot BTC ETFs, prompting a global reconsideration of this investment vehicle.
Lee Bok-Hyun revealed plans to meet with SEC Chair Gary Gensler later in the year to discuss digital assets and spot Bitcoin ETFs. This engagement is seen as significant given the SEC’s influence on global financial policies.
Potential Regulatory Shift in South Korea
The FSS’s interest in engaging with the SEC suggests a potential shift in South Korea’s regulatory approach. Previously, Korean securities regulators cautioned against brokering activities for US-based spot Bitcoin ETFs. However, they are now open to revisiting their stance on approving spot Bitcoin ETF trades in the US.
South Korea has historically aligned its crypto regulatory framework closely with that of the US. This includes implementing measures like banning credit card use for crypto purchases and outlawing crypto mixing services.
Hot Take: South Korea Seeks Guidance from the US on Spot Bitcoin ETFs
South Korea’s Financial Supervisory Service is looking to the United States for guidance on spot Bitcoin exchange-traded funds (ETFs). This move comes after the US Securities and Exchange Commission approved the first spot BTC ETFs in January. By engaging with the SEC and discussing digital assets and spot Bitcoin ETFs, South Korea aims to understand the potential impact of these investments on global financial policies. This signals a potential regulatory shift in South Korea’s approach, as they previously cautioned against brokering activities for US-based spot Bitcoin ETFs. With its history of aligning its crypto regulations with the US, South Korea is now open to revisiting its stance on approving spot Bitcoin ETF trades in the United States.
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