When the SEC approved its spot Bitcoin ETF, South Korea’s securities regulator warned local firms against brokering spot Bitcoin ETFs from the U.S.
South Korea’s Financial Supervisory Service (FSS), the chief financial oversight regulator in the country, is planning to tap the United States Securities and Exchange Commission (SEC) for insights into spot Bitcoin exchange-traded funds (ETFs).
The FSS is South Korea’s integrated financial regulator that examines and supervises financial institutions under the broad oversight of the Financial Services Commission.
FSS chief Lee Bok-Hyun presented a business plan for 2024 at the Financial Supervisory Service in Seoul on Feb. 5. The business plan includes visits to major advanced financial markets, such as New York, in the second quarter to discuss various aspects of the South Korean financial markets, including discussions on spot Bitcoin ETF, according to a report.
The FSS chief revealed that he plans to meet SEC chief Gary Gensler later this year to discuss various financial issues focusing on virtual assets and spot Bitcoin ETF. He added that the SEC’s recent approval of spot Bitcoin ETF had a major impact on the world’s financial policies.
The announcement from the FSS chief comes weeks after the SEC approved the first spot BTC ETFs in the U.S. In a historic judgment, the U.S. security regulatory body approved 11 spot BTC ETFs on Jan 10. after years of denial. The SEC had previously denied spot BTC ETF applications, citing the small size of the crypto market, which makes it prone to market manipulation.
In the second week of January, when the SEC approved the spot BTC ETF, the Korean securities regulator warned local firms against brokering spot Bitcoin ETFs from the U.S. However, at the same time, it said that they are planning to review and update their regulations with regard to the spot Bitcoin ETF trade approval in the U.S.
South Korea is one of the leading regulators of cryptocurrency markets in the Asia-Pacific region. The nation has often followed in the footsteps of the U.S. regarding crypto regulations, be it banning the use of credit cards for crypto purchases, or outlawin crypto mixing services.