The head of South Korea’s Financial Supervisory Service, Governor Lee Bok-hyun, is set to meet with U.S. SEC Chairman Gary Gensler in May to discuss important regulatory matters.
The agenda includes the possible classification of non-fungible tokens (NFTs) as virtual assets and the approval of spot bitcoin exchange-traded funds (ETFs) in South Korea. Unlike cryptocurrencies, NFTs are not currently recognized as virtual assets in South Korea due to their perceived limited impact on financial markets.
However, as speculative activities surrounding NFTs increase and the value of major cryptocurrencies continues to rise, South Korea’s stance may evolve. Reclassifying NFTs as virtual assets could lead to stricter regulatory oversight for issuers and distributors, similar to the regulations faced by local cryptocurrency service providers.
In September 2021, the implementation of new regulatory standards resulted in the closure of 34 crypto exchanges in South Korea. Over half of the nation’s platforms were unable to meet the requirements.
The upcoming discussion between Lee and Gensler will also address the potential approval of spot Bitcoin (BTC) ETFs in South Korea. Current regulations prevent local institutions from launching or brokering crypto products based overseas.
Despite these restrictions, South Korea’s major political parties have pledged to support the introduction of local spot Bitcoin ETFs ahead of the general election on April 10, generating excitement among investors.
South Korea is making progress in establishing a regulatory framework for cryptocurrencies, focusing on investor protection and the standardization of crypto token issuance and information disclosure. The first phase of this framework is expected to be implemented in July, with further developments underway.
For more information, read about Korean investors increasing their Bitcoin purchases by 400% and the challenges of maintaining BTC above $50k. Follow us on Google News for the latest updates.