South Korean regulator seeks Bitcoin ETF guidance, schedules meeting with Gary Gensler

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The Financial Supervisory Service (FSS) of South Korea has unveiled plans to meet with the US Securities and Exchange Commission (SEC) to discuss spot bitcoin exchange-traded funds (ETFs) and obtain insights on how to implement the offering to its domestic market. 

According to a report from Hankyung, FSS Governor Lee Bok-hyun shared in a recent presentation that he will visit New York in the second quarter to discuss various aspects of South Korean financial markets, including spot bitcoin ETFs. Lee plans to meet with SEC Chair Gary Gensler to discuss digital assets and spot bitcoin ETFs.

Lee cites the major impact of the SEC’s recent approval of spot Bitcoin ETFs on global financial policy, given the Commission’s history of rejection. Prior to its approval, the SEC saw the crypto sector as a risky space that could encourage market manipulation.

South Korean regulators previously issued a warning on crypto mixers and possible fraud in the sector. Days after the spot Bitcoin ETF approval, the country’s Presidential Office urged regulators to reconsider their position on Bitcoin ETFs and other crypto offerings, citing how the government could look to countries such as the US where these are regulated.

South Korea usually follows US regulatory moves in the crypto industry. Notably, it matched bans on using credit cards to buy crypto and outlawed crypto-mixing services such as Tornado Cash.

Alongside Japan, South Korea operates one of the Asia-Pacific region’s more advanced regulatory frameworks for crypto and digital assets. In December 2023, South Korea’s Financial Services Commission (FSC) proposed a new regulatory regime for crypto assets in which domestic banks must pay interest on customer crypto deposits.

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