South Korean Regulator Plans Talks on Spot Bitcoin ETF with SEC Chief Gary Gensler

South Korea’s primary financial regulator, the Financial Supervisory Service (FSS), is looking to engage with the United States Securities and Exchange Commission (SEC) to gain insights into spot Bitcoin exchange-traded funds (ETFs). 

The FSS, responsible for examining and overseeing financial institutions under the broader supervision of the Financial Services Commission, aims to discuss various aspects of South Korean financial markets, including spot Bitcoin ETFs, during planned visits to major advanced financial markets like New York in the second quarter of 2024. FSS Chief Lee Bok-Hyun presented this business plan on February 5 at the Financial Supervisory Service in Seoul.

The head of FSS disclosed intentions to meet with SEC Chair Gary Gensler later in 2024 for discussions on digital assets, particularly spot Bitcoin ETFs, along with other pertinent matters. He emphasised the significant influence of the SEC’s recent approval of spot Bitcoin ETFs on global financial policies.

This revelation from Lee follows closely on the heels of the SEC’s groundbreaking decision to approve the first 11 spot BTC ETFs in the United States on January 10. Notably, the SEC had previously rejected spot BTC ETF applications, expressing concerns about the cryptocurrency market’s size and susceptibility to market manipulation.

Following the SEC’s approval of spot BTC ETFs, the Korean securities regulator cautioned local companies against engaging in the brokerage of spot Bitcoin ETFs from the United States. Nevertheless, during that period, it expressed intentions to assess and revise its regulations pertaining to the approval of spot Bitcoin ETF trades in the United States.

South Korea holds a prominent role as one of the leading regulators of cryptocurrency markets in the Asia-Pacific region. The country has frequently aligned its crypto regulations with those of the U.S., adopting measures such as prohibiting the use of credit cards for crypto transactions and outlawing crypto mixing services.