Head of South Korea’s Financial Supervisory Service (FSS), Lee Bok-hyun, reportedly has intentions to hold discussions on cryptocurrency regulation with Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC). According to reports from Korean news outlet Chosunbiz on December 18, Lee is planning to visit the SEC in January to arrange a meeting with Gensler. The agenda for the meeting is expected to revolve around the cryptocurrency market's current state and the direction of regulatory policies affecting the sector.
Highlighting the significance of regulatory collaboration between nations for the decentralized nature of virtual assets, an anonymous South Korean government official emphasized the importance of this meeting. Both the U.S. and South Korea are undergoing critical times in terms of financial regulation. There's speculation within the expert community that the SEC may greenlight multiple spot Bitcoin exchange-traded products in January. Additionally, the FSS aims to introduce policies by July 2024 concerning how cryptocurrency investors deposit funds into exchanges and the procedures governing these transactions by companies.
The U.S. and South Korea have been embroiled in an extradition dispute regarding Do Kwon, a South Korean citizen and co-founder of Terraform Labs. Kwon was apprehended in Montenegro in March for using falsified travel documents and subsequently sentenced to four months in prison. Reports indicate that Kwon might potentially be extradited to the United States before South Korea.
Under Gary Gensler’s tenure, the SEC has faced criticism from various quarters within and outside the cryptocurrency industry for perceived indecision regarding spot cryptocurrency exchange-traded funds (ETFs). Despite receiving multiple applications from asset managers such as BlackRock, the SEC has not approved spot Bitcoin or Ethereum ETFs, favoring cryptocurrency futures as the only investment vehicle in this domain.
