South Korea's Financial Supervisory Service (FSS), the primary financial regulator in the country, is contemplating seeking guidance from the U.S. Securities and Exchange Commission (SEC) on the matter of spot Bitcoin exchange-traded funds (ETFs). The FSS, responsible for examining and supervising financial institutions under the oversight of the Financial Services Commission, is planning to engage in discussions on various aspects of the Korean financial market during visits to major developed financial markets, including New York, in the second quarter of 2024.
As part of the 2024 business plan presented by South Korea's Financial Services Minister Lee Bok-hyun on February 5, the FSS aims to explore insights on spot Bitcoin ETFs during a meeting with SEC Chairman Gary Gensler later in the year. The recent approval of the first spot Bitcoin ETF by the U.S. Securities and Exchange Commission has had a significant impact on global financial policy, prompting South Korean officials to seek discussions on the matter.
The announcement from Lee Bok-hyun comes in the wake of the SEC's historic decision to approve 11 spot Bitcoin ETFs in the United States on January 10. The SEC's move marks a departure from its previous rejections of spot BTC ETF applications, citing concerns about the size and susceptibility to market manipulation of the cryptocurrency market. Following the SEC's approval, South Korea's securities regulator cautioned local firms against facilitating spot Bitcoin ETF transactions from the United States, while also expressing intentions to review and update regulations surrounding approvals for U.S. spot Bitcoin ETF trading.
South Korea has emerged as a prominent regulator in the Asia-Pacific region for the cryptocurrency market, often aligning its regulatory stance with developments in the United States. Past regulatory actions by South Korea include bans on the use of credit cards for purchasing cryptocurrencies and the outlawing of cryptocurrency mixing services.
