South Korean Regulator Seeks Spot Bitcoin ETF Approval from SEC Chief Gary Gensler

South Korea’s Financial Supervisory Service (FSS), the main financial regulator in the country, is looking to gather insights from the United States Securities and Exchange Commission (SEC) on spot Bitcoin exchange-traded funds (ETFs). The FSS, which oversees financial institutions under the Financial Services Commission, presented its 2024 business plan on February 5th, which includes visiting major financial markets like New York in order to discuss various aspects of South Korean financial markets, including spot Bitcoin ETFs. The FSS chief, Lee Bok-Hyun, revealed his plans to meet with SEC Chair Gary Gensler later in 2024 to discuss digital assets and spot Bitcoin ETFs, among other matters. He noted that the recent approval of spot Bitcoin ETFs by the SEC has had a significant impact on global financial policies.

This announcement from FSS chief Lee Bok-Hyun comes in the wake of the SEC’s approval of the first spot BTC ETFs in the United States. On January 10th, in a decision of great historical significance, the SEC approved 11 spot BTC ETFs. The SEC had previously denied spot BTC ETF applications, citing concerns about market manipulation due to the small size of the crypto market. Following the SEC’s approval, the Korean securities regulator cautioned local firms against brokering spot Bitcoin ETFs from the United States. It also stated that it intends to review and update its regulations regarding the approval of spot Bitcoin ETF trades in the United States.

South Korea is regarded as one of the key regulators of cryptocurrency markets in the Asia-Pacific region. The country has often taken cues from the United States when it comes to crypto regulations, such as implementing a ban on the use of credit cards for cryptocurrency purchases and outlawing crypto mixing services. By seeking insights and engaging in discussions with the SEC, South Korea’s FSS aims to stay informed about latest developments and best practices in the field of spot Bitcoin ETFs. This proactive approach aligns with its role as a leading regulator in the region and helps ensure the stability and integrity of South Korean financial markets.