The Financial Supervisory Service (FSS) of South Korea — the country’s top financial regulator — has revealed plans to meet with the U.S. Securities and Exchange Commission (SEC) to discuss spot Bitcoin exchange-traded funds (ETFs) and get insights on how to roll out the investment vehicle in its domestic market.
South Korea’s Financial Regulations Chief To Meet Gensler
South Korea’s principal financial regulator is set to have a sit-down with U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler in Washington, DC. The visit will mark the first meeting between the two financial regulators.
According to a report from local news outlet Hankyung, Financial Supervisory Service Governor Lee Bok-hyeon intends to visit “advanced financial markets” such as New York in Q2 2024 to talk about various aspects of South Korean financial markets, including spot-based Bitcoin exchange-traded funds (ETFs).
The FSS boss indicated that he will meet Gensler to discuss the “important” subject of virtual assets and spot Bitcoin ETFs. Lee highlighted the significant impact of the SEC’s January 10 regulatory approval of spot BTC ETFs on the world’s financial policy, given the agency’s decade-long history of denials. Before its long-anticipated approval, the Wall Street top financial cop often slammed the “Wild West” crypto industry, saying it was rife with fraud, scams, and possible market manipulation.
Just days after the SEC’s landmark spot ETF approval, South Korea’s Financial Services Commission (FSC) cautioned local companies against brokering spot Bitcoin ETFs from the United States, as it goes against the country’s Capital Markets Act. However, the FSC revealed at the time it planned to study and update its regulations around the spot crypto approval approach in the US.
Spot ETFs Coming To South Korea?
South Korea boasts one of the Asia-Pacific region’s most advanced regulatory frameworks for crypto assets. The country often follows the U.S.’s example regarding crypto regulations. For instance, South Korea imposed restrictions against the use of credit cards to purchase crypto and crypto-mixing services such as Tornado Cash — after the US.
The crypto community will be watching the outcome of this meeting, as it could impact investment decisions and market strategies now that regulators across the globe are questioning whether they should also approve spot BTC ETFs. Approval of such products in South Korea could further boost investor confidence and promote mass cryptocurrency adoption.