Gary Gensler, the head of the SEC, authorized the first Bitcoin ETFs, prompting the South Korean financial regulator to advise domestic companies against providing similar offerings. However, there appears to be a change in perspective.
FSS and SEC Chiefs to Meet
South Korea’s Financial Supervisory Service (FSS) is engaging with the SEC regarding spot Bitcoin ETFs. FSS director Lee Bok-Hyun plans to visit major global financial centers, including New York, in the second quarter of 2024 as part of their objectives for the year.
During these discussions, the agenda will encompass a wide range of topics concerning South Korea’s financial markets, with particular emphasis placed on analyzing the intricacies and implications of spot Bitcoin ETFs within the country’s regulatory framework.
This decision follows the recent approval by the SEC of the first spot BTC ETFs. On January 10th, the SEC authorized 11 spot BTC ETFs, marking a significant milestone after previous rejections due to concerns about potential market manipulation in the relatively small cryptocurrency market.
Following the US Lead
South Korea has emerged as a prominent force in shaping cryptocurrency policies across the Asia-Pacific region, frequently drawing inspiration from the United States’ regulatory framework to inform its own approach to governing digital assets within its borders.
Notably, this Asian-Pacific country has enacted prohibitions on utilizing credit cards for cryptocurrency transactions and has adopted a resolute stance against crypto mixing services.
This alignment with regulatory practices observed in the United States underscores the country’s commitment to fostering a secure and transparent environment within its cryptocurrency ecosystem.