South Korea’s Monetary Supervisory Service (FSS), the nation’s major monetary regulator, is setting its sights on the US for steering on the intricacies of spot Bitcoin exchange-traded funds (ETFs).
With a mission to supervise monetary establishments, the FSS operates beneath the bigger umbrella of the Monetary Providers Fee. In a major transfer, FSS chief Lee Bok-Hyun announced an in depth enterprise technique for the approaching 12 months throughout an occasion in Seoul on Feb. 5, highlighting plans for engagements with main monetary markets, notably New York, to additional discussions on the South Korean monetary panorama, together with the pivotal subject of spot Bitcoin ETFs.
This announcement follows the U.S. Securities and Change Fee’s (SEC) climacteric approval of the first spot BTC ETFs in January, marking a historic shift within the regulatory stance in direction of cryptocurrency investments. The SEC had previously declined functions for spot BTC ETFs, citing considerations about market manipulation dangers as a result of crypto market’s comparatively small measurement.
Nevertheless, on Jan. 10, the SEC reversed its stance and authorised 11 spot BTC ETFs. This modification has sparked a global reconsideration of spot Bitcoin ETFs, with South Korea being no exception.
Lee Bok-Hyun, in his marketing strategy, revealed his plans to fulfill with SEC Chair Gary Gensler later within the 12 months to deliberate on numerous issues, together with digital belongings and spot Bitcoin ETFs. The dialogue is anticipated to the touch on the SEC’s current coverage selections relating to spot Bitcoin ETFs and their broader impression on world monetary insurance policies.
The FSS chief underscored the significance of this engagement, noting the numerous affect of the SEC’s insurance policies on the worldwide stage.
The transfer by the FSS alerts a possible shift in South Korea’s regulatory strategy. Beforehand, the Korean securities regulator had cautioned native corporations towards partaking in brokering actions for U.S.-based spot Bitcoin ETFs, citing potential conflicts with present rules. Nevertheless, the regulator additionally indicated a willingness to revisit and probably replace its stance on the approval course of for spot Bitcoin ETF commerce in the US.
South Korea, a number one cryptocurrency market regulator within the Asia-Pacific area, has traditionally aligned its crypto regulatory framework intently with that of the U.S. As an illustration, this consists of implementing measures reminiscent of banning credit card use for crypto purchases and outlawing crypto mixing providers.