In a recent development, Lee Bok-hyun, head of the South Korean Supervisory Service (FSS), has announced plans to meet with Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC) in January. This meeting focuses on the status of the crypto market and regulatory policies, aiming to take significant steps in international collaboration on cryptocurrencies.
Emphasis on crypto regulation and supervision The announced meeting coincides with a crucial time for financial regulators in both countries. With the expectation that the SEC may approve multiple spot bitcoin (BTC) exchange-traded funds (ETFs) in January and the FSS planning to implement policies in July 2024 regarding how crypto investors deposit funds on exchanges, much is at stake. Simultaneously, tensions exist between the U.S. and South Korea regarding the extradition of South Korean national and co-founder of Terraform Labs, Do Kwon. Kwon, arrested in Montenegro and sentenced to four months in prison for using forged travel documents, might be extradited to the United States before South Korea.
The SEC and crypto ETFs Under Gensler’s leadership, the SEC has faced substantial criticism from the crypto industry for its reluctance to approve a spot crypto exchange-traded fund (ETF). While several applications from asset managers, including BlackRock, are still pending, the SEC has not yet approved a spot BTC or ethereum (ETH) ETF. Expectations are that such ETFs might finally receive approval in the first part of 2024, although that remains to be seen. The meeting between Lee Bok-hyun and Gary Gensler symbolizes a new phase in the global approach to crypto regulation. It underscores the need for cross-border collaboration to establish a framework that is not only effective nationally but also internationally. With the global crypto market continually evolving, this meeting could be a key moment in shaping the future of crypto supervision and regulation.
Julia