South Korea Regulator Enters Talk with US SEC’s Chair Gary Gensler Regarding Spot Bitcoin ETFs

When the SEC ratified its spot Bitcoin exchange-traded fund, the securities regulator cautioned local companies against brokering spot Bitcoin exchange-traded funds from the U.S.

The Financial Supervisory Service (FSS) is South Korea’s primary financial regulator. It intends to understand spot Bitcoin exchange-traded funds (ETFs) by engaging with the U.S. Securities and Exchange Commission (SEC).

Korea Benchmarking From Other Financial Markets

The Financial Supervisory Committee monitors and governs financial institutions under the Financial Services Commission’s vast oversight. On February 5, Lee Bok-Hyun, FSS’s chief, presented a business plan for this year at the Financial Supervisory Service in Seoul. 

This plan entails visits to significantly developed financial markets, for instance, New York, in the 2nd quarter of 2024, to deliberate about different aspects of the nation’s financial markets. This includes talks concerning spot Bitcoin.

The Financial Supervisory Committee revealed his intentions to meet Gary Gensler, the SEC’s chair, later this year to talk about spot Bitcoin exchange-traded funds, digital assets, and other issues. Besides, he noted that the regulator’s latest sanctioning of spot Bitcoin exchange-traded funds significantly affected the globe’s financial policies.

Lee’s announcement comes weeks following the SEC’s ratification of the initial spot Bitcoin exchange-traded funds in the U.S. In a notable verdict, the regulator granted approval to 11 funds who sought the spot Bitcoin exchange-traded funds (ETFs). 

Is South Korea’s Regulator Borrowing Leaf from US SEC?

The Securities and Exchange Commission had earlier turned down applications for spot Bitcoin exchange-traded funds, quoting the crypto market’s small size that makes it susceptible to market manipulation.

Following the approval of spot Bitcoin ETFs by the SEC, local companies were cautioned against brokering those from the U.S. Nevertheless, it claimed it intended to evaluate and revise its guidelines concerning the approval of spot Bitcoin exchange-traded fund trade in the same nation.

South Korea is a major cryptocurrency market regulator in the Asia-Pacific region’s cryptocurrency markets. Concerning crypto regulations, the nation has frequently followed the United States’ footsteps, for instance, banning crypto mixing services and forbidding using credit cards for crypto purchases.