SEC and FSS to Hold Discussions on Cryptocurrency Regulations in January
Lee Bok-hyun, the head of South Korea’s Financial Supervisory Service (FSS), is scheduled to meet with Gary Gensler, chair of the United States Securities and Exchange Commission (SEC), in January to discuss cryptocurrency regulations. This proactive meeting comes at a critical time, as both countries are undergoing regulatory changes in the cryptocurrency market.
The SEC is rumored to approve several spot Bitcoin exchange-traded products, indicating a more favorable regulatory stance towards cryptocurrencies. Meanwhile, South Korea is planning to implement new policies for crypto investors and the management of their funds by exchanges in July 2024. These developments highlight the necessity for high-level discussions on supervisory policies in this rapidly evolving sector.
The ongoing legal challenges faced by Do Kwon, co-founder of Terraform Labs, in multiple countries, including the potential extradition to the United States, further complicate the regulatory landscape. This case exemplifies the complex intersection between international law and the decentralized nature of cryptocurrencies.
Under Gary Gensler’s leadership, the SEC has approached the crypto market with caution. The industry eagerly awaits the SEC’s decisions on spot crypto exchange-traded funds (ETFs), particularly for major cryptocurrencies like Bitcoin and Ether. So far, the SEC has only approved ETFs tied to crypto futures. The forthcoming meeting between Lee and Gensler could shed light on the SEC’s future regulatory approach in this area.