South Korean Financial Watchdog Turns to SEC for Bitcoin ETF Guidance

South Korea's Financial Supervisory Service (FSS) is seeking guidance from the United States Securities and Exchange Commission (SEC) on spot Bitcoin exchange-traded funds (ETF).

FSS Chief's 2024 Plans: Spotlight on New York and Bitcoin ETFs

The Governor of FSS, Lee Bok-Hyun, outlined plans for 2024, including visits to major financial markets like New York in the second quarter. The purpose is to discuss various aspects of South Korean financial markets, including spot Bitcoin ETFs.

Lee intends to meet with the SEC's Chair, Gary Gensler, later in the year to discuss digital assets and spot Bitcoin ETFs. He highlighted the significant impact of the SEC's recent approval of spot Bitcoin ETFs on global financial policies.

The announcement follows the SEC's approval of 11 spot Bitcoin ETFs on January 10, marking a historic decision. Previously, the SEC had denied spot Bitcoin ETF applications due to concerns about market manipulation in the crypto market.

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FSC Faces Pressure amidst SEC's Bitcoin ETF Approval

Finance Magnates reported that the Office of the President of the Republic of Korea has been challenging the Financial Services Commission's (FSC) stance against spot Bitcoin ETFs, following the FSC's caution against trading US-based spot Bitcoin ETFs post-approval by the SEC.

The President's Office urged the FSC to adopt a more flexible approach, signaling a potential regulatory shift. The FSC recently warned against domestic securities firms trading or brokering overseas-listed spot Bitcoin ETFs, citing possible violations of the Capital Markets Act.

However, the President's Office emphasized the need for the FSC to consider global developments and explore legal adjustments. Despite the SEC's approval, South Korea's financial regulator has rejected spot Bitcoin ETF trading, expressing concerns about potential violations and advocating for a cautious approach in aligning activities with domestic regulations.

The absence of a legal framework acknowledging virtual assets in the nation further complicates the issue, rendering it difficult for the FSC to permit the listing and indirect trading of crypto ETFs through domestic securities firms.