South Korean and US Financial Heads to Discuss Crypto Regulation in Forthcoming Meeting
Summary:
South Korea's Financial Supervisory Service leader, Lee Bok-hyun, is planning to meet with US Securities and Exchange Commission chair, Gary Gensler, to discuss cryptocurrency regulation. The meeting, scheduled for January, comes amidst speculation that the SEC may approve several Bitcoin exchange-traded products and as South Korea prepares to roll out new guidelines for managing crypto investments. There's also ongoing debate on the extradition of South Korean national, Do Kwon, co-founder of Terraform Labs. The SEC continues to face criticism over its indecision on a spot crypto exchange-traded fund.
Lee Bok-hyun, the leader of South Korea's financial watchdog, the Financial Supervisory Service (FSS), is reportedly planning a meeting with Gary Gensler, head of the United States Securities and Exchange Commission (SEC). The main agenda of their meeting will be the increasingly prominent topic of crypto regulation, as per a Chosunbiz report dated December 18th. Lee has scheduled the visit to SEC to take place in January, intending to converse with Gensler about the state of the crypto market and the future of policies guiding the field. At the time this news was published, the SEC had not responded to Cointelegraph's request for comment. A South Korean government official, who wished to remain anonymous, stressed the need for regulatory cooperation between nations, particularly in dealing with virtual assets that have no borders.
The timing of the meeting is crucial since both countries' regulatory bodies face significant speculation. Marketplace predictions suggest the SEC may sanction the operation of several spot Bitcoin exchange-traded products in January. Concurrently, the FSS is gearing up to introduce guidelines in July 2024 regarding how cryptocurrency investors deposit money into exchanges and how these businesses manage the transactions.
Related: Unlicensed crypto exchanges in crosshairs of South Korean financial regulators.
There are ongoing disagreements between the U.S. and South Korea concerning the extradition of Do Kwon, a South Korean national and one of the founders of Terraform Labs. Do Kwon was apprehended in Montenegro in March and subsequently sentenced to a four-month prison term for possessing fake travel documentation. There are ongoing reports which indicate that Kwon may be extradited to the United States before South Korea.
In his tenure, Gary Gensler's SEC has drawn flak from multiple sectors, including the cryptocurrency universe, due to its perceived disinclination to pass judgement on a spot crypto exchange-traded fund (ETF). While several applications from asset management firms like BlackRock are pending, the SEC has thus far shied away from green-lighting a spot BTC or Ether ETF, choosing instead to approve only derivatives-based crypto investment mechanisms.
Magazine: Is SEC Chief Gensler the final authority on crypto regulations?
Published At
12/20/2023 8:27:45 PM
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