The head of South Korea’s financial regulator, the Financial Supervisory Service (FSS), is scheduled to meet with U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler to discuss the Spot Bitcoin ETF.
According to local publications HankyoungOn February 5, Financial Supervisory Board President Lee Bok-hyun announced his business plan for the coming year, detailing plans to visit “advanced financial markets” including New York. Lee also announced plans to meet with SEC Chairman Gensler, saying the agenda will include “important” topics such as crypto assets and spot Bitcoin ETFs.
South Korean regulators are taking a cautious approach to Bitcoin ETFs. The Financial Services Commission does not intend to change its position on rules that prevent financial institutions from launching crypto ETFs, following the landmark approval of several spot Bitcoin ETFs in the US in January. He reiterated that. It also warned that intermediation of U.S. spot Bitcoin ETFs may be illegal in the domestic market based on the country’s capital market laws.
Capital market laws limit the underlying assets of ETFs to financial investment products, currencies, and regular instruments. Cryptocurrencies are excluded as they are not considered financial assets.
The SEC’s approval of a Spot Bitcoin ETF in the US in early January was seen as a watershed moment for the institutional acceptance of cryptocurrencies, but US regulators only took this step reluctantly. For more than a decade, the SEC has rejected applications from companies wishing to offer such investment products to U.S. investors, consistently citing market manipulation concerns.
After years of delays and application denials, the SEC agreed with the court’s order to review Grayscale’s application that the regulator’s decision was “arbitrary and capricious” and took action. Lectured.
In a statement accompanying the endorsement, Gensler acknowledged that “things have changed,” but also used the opportunity to say, “We do not endorse or support Bitcoin.”
Edited by Stacey Elliott.