South Korea will talk on “Bitcoin spot ETF” with the American securities regulatory body

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South Korean financial officials planned to talk on the matter of crypto regulation & Bitcoin spot ETF products with the US SEC body.

South Korea is a very big hub for the crypto sector. The crypto sector is fully regulated in this country & also half a dozen crypto exchanges are only allowed to provide crypto-fiat paired services in the jurisdiction of this country. In July of this year, Korean regulators are planning to introduce a better level of comprehensive two-part crypto regulation framework.

On 5 Feb 2024, Many local media reports confirmed that Lee Bok-hyun, the country’s Head of the Financial Supervisory Service, is focused on bringing Bitcoin spot ETF products into the country.

Reportedly he planned to meet Gary Gensler, the chairman of the United States Securities and Exchange Commission (SEC). 

In an interview with a journalist, Gensler said that he will discuss the matter of crypto regulation & Bitcoin spot ETF with Gary Gensler and the meeting will focus on the multiple areas of this innovative sector.

It is expected that Lee will meet Gensler somewhere in the second quarter of this year and it will be very interesting for the future of the Korean crypto market. 

As per reports, South Korean regulators are taking steps very carefully toward Bitcoin spot ETF and they are mainly targeting the risky factors for allowing such financial products in the Korean economy.

As we know, the US SEC approved 11 Bitcoin spot ETF products on 10 Jan 2024 with a very big warning of risks associated with digital assets. 

Just after the approval of Bitcoin spot ETF, the South Korean Financial Services Commission (FSC) published a notice for all the warning domestic securities firms brokering overseas-listed spot Bitcoin ETFs and said that listing of America ETF products backed by Bitcoin ‘may violate’ the existing government stance on virtual assets and the Capital Markets Act.

In short, the Korean securities regulatory body clearly said that they will not allow institutional investors to invest in the crypto market for now.

Read also: Analysts expect a bull run for Cardano (ADA), as the network processed 4 million+ transactions in the last two months