South Korean Financial Regulator to Discuss Spot Bitcoin ETFs with SEC Chair
The head of South Korea’s financial regulator, the Financial Supervisory Service (FSS), is planning to meet with U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler to discuss spot Bitcoin exchange-traded funds (ETFs). FSS governor Lee Bok-Hyun presented a business plan for the year ahead, which includes visiting “advanced financial markets” like New York and meeting with Gensler. The topics of discussion will focus on virtual assets and spot Bitcoin ETFs, which are considered important.
Caution from South Korean Regulators
South Korea’s regulators have been cautious about Bitcoin ETFs. The Financial Services Commission has reiterated that it will not adjust its stance on rules that prevent financial institutions from launching crypto ETFs, despite the approval of spot Bitcoin ETFs in the United States. The commission has also warned that brokering U.S. spot Bitcoin ETFs may be illegal in local markets under the Capital Markets Act, as cryptocurrencies are not considered financial assets.
SEC’s Reluctant Approval of Spot Bitcoin ETFs
The U.S. Securities and Exchange Commission recently approved spot Bitcoin ETFs, marking a significant moment for institutional acceptance of cryptocurrency. However, the SEC had historically rejected such applications due to concerns about market manipulation. The approval came after a court order to review Grayscale’s application and was accompanied by a statement from SEC Chair Gensler acknowledging that circumstances had changed but clarifying that the SEC did not endorse Bitcoin.
Hot Take: South Korea Seeks Clarity on Spot Bitcoin ETFs
The head of South Korea’s financial regulator plans to meet with the SEC chair to discuss spot Bitcoin exchange-traded funds (ETFs). South Korean regulators have been cautious about Bitcoin ETFs, and the Financial Services Commission has maintained its stance against financial institutions launching crypto ETFs. The recent approval of spot Bitcoin ETFs in the U.S. by the SEC represents a milestone for institutional acceptance of cryptocurrency. South Korea seeks clarity on the legality and regulations surrounding spot Bitcoin ETFs in their local markets.
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