Following the recent approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), South Korea’s Financial Supervisory Service (FSS), the primary financial oversight authority in the country, is set to seek insights from the SEC regarding these exchange-traded funds.
The FSS, serving as South Korea’s comprehensive financial regulator under the broad supervision of the Financial Services Commission, disclosed its 2024 business plan on Feb. 5. As part of this plan, FSS Chief Lee Bok-Hyun intends to visit major advanced financial markets, including New York, in the second quarter. The primary focus of these visits is to engage in discussions about various aspects of the South Korean financial markets, with a specific emphasis on spot Bitcoin ETFs.
Chief Lee Bok-Hyun revealed his intention to meet with SEC Chief Gary Gensler later in the year to address a range of financial issues, particularly those related to virtual assets and spot Bitcoin ETFs. He underscored the significant impact of the SEC’s recent approval of spot Bitcoin ETFs on global financial policies.
This announcement by the FSS chief comes in the wake of the SEC’s groundbreaking decision to approve 11 spot Bitcoin ETFs on Jan 10. After years of denials, the regulatory body acknowledged the evolving landscape and gave the green light to these exchange-traded funds. The SEC had previously rejected spot Bitcoin ETF applications, expressing concerns about the crypto market’s small size and susceptibility to market manipulation.
In response to the SEC’s approval, the Korean securities regulator cautioned local firms against brokering spot Bitcoin ETFs from the U.S. in the second week of January. Simultaneously, it expressed intentions to review and update its regulations concerning the approval of spot Bitcoin ETF trades from the U.S.
South Korea, a prominent regulator of cryptocurrency markets in the Asia-Pacific region, often takes cues from the U.S. in shaping its crypto regulations. This trend is evident in various measures, such as the ban on using credit cards for crypto purchases and the prohibition of crypto mixing services.
