Bitcoin Spot ETF: South Korean Regulator Turns To US SEC Chairman For Guidance

South Korea’s regulator, the Financial Supervisory Service (FSS), has revealed its intent to seek guidance on Bitcoin Spot Exchange-Traded Funds (ETFs) from the United States Securities and Exchange Commission (SEC).

FSS Governor To Meet With Gary Gensler On Bitcoin ETFs Matters

Lee Bok-hyun, the governor of the FSS in South Korea, is slated to meet with US SEC chairman Gary Gensler within the year to discuss several financial markets in the country. These include digital assets and Bitcoin spot ETFs, among others. 

According to a local report, the governor underlined a business plan for 2024 at the Financial Supervisory Service in Seoul. The plan calls for trips to major advanced financial markets such as New York in the Q2 of this year.

Lee’s remark come a few weeks after the SEC accepted the first Spot Bitcoin ETFs in the United States. On January 10, the regulatory watchdog made history by approving 11 Spot BTC ETFs.

Considering the SEC’s past rejections, Lee highlights the significant impact of the agency’s recent approval of Bitcoin spot ETFs on international financial policy. Regulators in South Korea had previously cautioned about crypto mixers and possible fraud in the space. However, the country’s presidential office encouraged regulators to reconsider their stance on BTC ETFs and other crypto products days after the approval.

In addition, they mentioned how the government might look toward countries with regulations on these matters, such as the US. ” We need to change our country’s legal system appropriately, or to consider whether things that happen overseas can be accepted in our country,” Seong Tae-Yoon, director of the presidential office’s policy stated.

In the Asia-Pacific region, South Korea is one of the top regulators of cryptocurrency markets, alongside Japan. When it comes to crypto rules, the country has persistently adopted US policies, such as restricting crypto mixing services and prohibiting the utilization of credit cards for digital asset purchases.

South Korea FSC To Address Local Cryptocurrency Laws

The Financial Services Commission (FSC) of South Korea, announced new plans today that would require anyone taking on executive roles in cryptocurrency firms to get approval from the regulator prior to taking on their responsibilities. 

In the official announcement, the FSC stated that it plans to resolve issues with the present legislation that regulates the crypto market in the country. As a result, the FSC may have more influence over the local crypto asset market.

If the restrictions come into effect, newly hired executives in South Korean cryptocurrency industries will have to get regulatory permission before they can start working.

Subsequently, the Ministry of Government Legislation will inspect the revisions before the FSC votes on them. Nonetheless, they should go into effect by the end of March, if authorized.

Featured image from iStock, chart from Tradingview.com