- Korea’s Financial Supervisory Service (FSS) has consulted with the SEC, indicating a possible change in Korea’s stance on spot Bitcoin ETFs.
- Speculation is growing within the Korean investment community as the government’s review paves the way for the acceptance of cryptocurrency ETFs, which could impact the investor landscape in the region.
Surprisingly, Korea’s Financial Supervisory Service (FSS) has expressed interest in collaborating with the U.S. Securities and Exchange Commission (SEC). (secretary) Exploring the possibilities surrounding spot Bitcoin exchange-traded funds (ETFs). This means that the stance of the Korean government, which has maintained a strict ban on cryptocurrency ETFs despite recent approval from the US SEC, is likely to change.
Cryptocurrency Industry High-Level Dialogue
Lee Bok-hyeon, head of the Financial Supervisory Service, plans to visit the United States at the end of this year and have high-level discussions with the SEC chairman. Gary Gensler. The agenda includes exploring various aspects of the cryptocurrency industry, with a particular focus on spot Bitcoin ETFs. This announcement was made at Chairman Bok-hyun’s 2024 business plan presentation held at the Financial Supervisory Service in Yeouido, Seoul.
Key Discussion Points
At the expected meeting, Director Bok-Hyeon and Chairman Gensler are expected to discuss in-depth important areas such as Korea’s discount measures, spot Bitcoin ETF outlook, and corporate value increase programs. The importance of SEC policies on the global stage will also be an important topic of discussion.
Changing Dynamics: Possible Reversal of Korea’s Position
This development comes less than a month after the SEC gave groundbreaking approval to the first spot Bitcoin ETF in the United States. The decision marks a significant departure from the agency’s 10-year history of rejecting similar proposals from a variety of asset managers.
Initially, the Korean government emphasized its will to maintain the ROK-US alliance. Ban on cryptocurrency ETFs, emphasizes that cryptocurrency will not be recognized as a financial asset. However, a new perspective was presented with the recent appointment of Presidential Chief of Staff Sung Tae-yoon.
Taeyun urged the Financial Services Commission of Korea (FSC) to adjust its position to international standards and advocated for the acceptance of investment vehicles such as ETFs. He emphasized the importance of flexibility rather than a rigid yes or no stance.
Market speculation and investor sentiment
As the possibility of a policy U-turn approaches, speculation is rampant in the domestic investment community. Domestic investment giants predict that if spot Bitcoin ETFs are eventually launched, demand for these financial products will remain robust.