South Korea eyes US SEC’s approach to spot Bitcoin ETFs for regulatory insight

South Korea’s Financial Supervisory Service (FSS), the nation’s primary financial regulator, is setting its sights on the United States for guidance on the intricacies of spot Bitcoin exchange-traded funds (ETFs). 

With a mission to oversee financial institutions, the FSS operates under the larger umbrella of the Financial Services Commission. In a significant move, FSS chief Lee Bok-Hyun announced a detailed business strategy for the coming year during an event in Seoul on Feb. 5, highlighting plans for engagements with major financial markets, notably New York, to further discussions on the South Korean financial landscape, including the pivotal topic of spot Bitcoin ETFs.

This announcement follows the U.S. Securities and Exchange Commission’s (SEC) climacteric approval of the first spot BTC ETFs in January, marking a historical shift in the regulatory stance towards cryptocurrency investments. The SEC had previously declined applications for spot BTC ETFs, citing concerns about market manipulation risks due to the crypto market’s relatively small size. 

However, on Jan. 10, the SEC reversed its stance and approved 11 spot BTC ETFs. This change has sparked a global reconsideration of spot Bitcoin ETFs, with South Korea being no exception.

You might also like: BlackRock and Fidelity’s Bitcoin ETFs break into top 10 with $4.8b January inflow

Lee Bok-Hyun, in his business plan, revealed his plans to meet with SEC Chair Gary Gensler later in the year to deliberate on various matters, including digital assets and spot Bitcoin ETFs. The dialogue is expected to touch on the SEC’s recent policy decisions regarding spot Bitcoin ETFs and their broader impact on global financial policies.

The FSS chief underscored the importance of this engagement, noting the significant influence of the SEC’s policies on the international stage.

The move by the FSS signals a potential shift in South Korea’s regulatory approach. Previously, the Korean securities regulator had cautioned local firms against engaging in brokering activities for U.S.-based spot Bitcoin ETFs, citing potential conflicts with existing regulations. However, the regulator also indicated a willingness to revisit and possibly update its stance on the approval process for spot Bitcoin ETF trade in the United States.

South Korea, a leading cryptocurrency market regulator in the Asia-Pacific region, has historically aligned its crypto regulatory framework closely with that of the U.S. For instance, this includes implementing measures such as banning credit card use for crypto purchases and outlawing crypto mixing services.

Read more: South Korea mulls over crypto tax abolition amid financial investment tax repeal
Follow Us on Google News

Comments

Post a Comment

Popular posts from this blog

DeFi CEO Says ‘No One Cares’ to Deutsche Bank Entry into BTC Custody

Deutsche Bank to offer bitcoin custody solution for institutional clients. Cake Group CEO believes the move will not substantially increase capital inflow or attract new participants. Deutsche Bank’s Paul Maley projects the digital asset sector to grow to trillions of dollars. Julian Hosp, the CEO of DeFi business Cake Group, has shared a skeptical reaction to Deutsche Bank’s newly-launched bitcoin custody services for institutional clients. Responding to a post on X (Twitter) by Bitcoin Magazine announcing the bank’s new services, Hosp wrote “Sadly, no one cares”. In full, his response read, And guess what… sadly no one cares… because everyone in Germany can already buy #bitcoin either with an ETF (that has literally ZERO volume) or on an exchange. All these banks entering the space, are not bringing in extra money or people. They are just re-routing existing… https://t.co/MMZHSbGB9U — Dr. Julian Hosp (@julianhosp) September 15, 2023 The Cake Group CEO argue
Read more

MATIC Price Plunges, Have the Bulls Finally Lost Control?

Image
MATIC witnessed a decline in bullish momentum and has lost hold of the $0.74 psychological support. Buying pressure was weak as the CMF hovered around the zero line. Traders might likely short/sell MATIC in the near term since the 50 EMA crossed over the 20 EMA. Polygon (MATIC) brief dip below $0.78 has turned out to be an event that has lasted a whopping five days. Over the last 24 hours, the altcoin had lost 2.32% of its value. But its last 30 days’ performance was controlled by the bulls where MATIC increased by 6.61%. Currently, the MATIC/USD 4-Hour chart shows that the altcoin was hovering around a tight support zone at $0.71. Due to decreased demand, MATIC’s buying strength has been cut off. This indicates bearish dominance around $0.72. For MATIC to regain bullish momentum, the price must rise above the $0.74 psychological level. But if selling pressure outweighs demand, then the recovery attempt could be quenched. Furthermore, bears have pushe
Read more

BH Token stolen funds funneled into Tornado Cash

Image
Funds stolen in a prior exploit have reportedly been channeled into Tornado Cash, totalling an estimated 1,500 BNB now within the mixer. Deposits into Tornado Cash According to an Oct. 11 from Certik, an exploit occurred on BH Token (BlackHole token), resulting in an exploiter (0xFDb) acquiring $1.2 million USDT, which was later converted to BNB and deposited into Tornado Cash, an Ethereum-based privacy tool. #CertiKSkynetAlert The BH Token exploiter has deposited stolen funds into @TornadoCash So far, 1,500 BNB has been deposited into the mixer On 11th October, Black Hole token was exploited for 1.2m USDThttps://t.co/d9ZC6o2YsQ — CertiK Alert (@CertiKAlert) October 19, 2023 Now, in a follow-up development dated Oct. 19, the malicious actor responsible for the theft has channeled stolen funds into Tornado Cash, has deposited a total of 1,500 BNB into the mixing service so far.  A subject of another alert Unfortunately, this is not the first time that Tornado Cash has made
Read more