Lee Bok-hyun, the head of South Korea’s Financial Supervisory Service (FSS), is set to meet with Gary Gensler, the chair of the United States Securities and Exchange Commission (SEC), in January. The discussions will revolve around crypto market status and supervisory policy direction.
A South Korean government official emphasized the significance of regulatory cooperation for borderless virtual assets, highlighting the need for coordinated efforts between countries.
Critical Time for Financial Regulators
The meeting comes at a crucial juncture for both the SEC and FSS. Speculations abound regarding the SEC’s potential approval of multiple spot Bitcoin exchange-traded products in January. Meanwhile, the FSS aims to implement policies in July 2024, focusing on crypto investor fund deposits into exchanges and transaction handling by firms.
The U.S. and South Korea are currently embroiled in a dispute over the extradition of Terraform Labs co-founder Do Kwon. Kwon, arrested in Montenegro for using falsified travel documents, may face extradition to the U.S. before South Korea.
SEC’s Crypto ETF Decision Dilemma
Under Gensler’s leadership, the SEC faces criticism for its apparent hesitancy in deciding on a spot crypto exchange-traded fund (ETF). Despite pending applications from asset managers, including BlackRock, the SEC has not yet approved a spot BTC or Ether ETF, only sanctioning investment vehicles tied to crypto futures.
The regulatory discussions between Lee and Gensler have implications for the global crypto market, highlighting the need for international collaboration in shaping supervisory policies for virtual assets.
