Key Points
Governor Lee Bok-hyun, the head of South Korea’s Financial Supervisory Service, is set to meet with U.S. SEC Chairman Gary Gensler.
The meeting is planned for May.
The main topics of discussion will be key regulatory issues.
Regulatory Discussions
One point on the agenda is the potential classification of non-fungible tokens (NFTs) as virtual assets.
Currently, South Korea does not recognize NFTs as virtual assets.
This is due to their perceived minimal impact on financial markets.
However, this stance may change as speculative activities around NFTs increase.
This is in line with the rising value of major cryptocurrencies.
The reclassification of NFTs as virtual assets could extend regulatory oversight to their issuers and distributors.
This would impose stringent requirements similar to those local cryptocurrency service providers face.
In September 2021, new regulatory standards led to the closure of 34 crypto exchanges.
Over half of the nation’s platforms could not meet the criteria.
The discussion between Lee and Gensler will also cover the potential approval of spot Bitcoin (BTC) ETFs in South Korea.
Current regulations prevent local institutions from launching or brokering overseas-based crypto products.
Despite these restrictions, South Korea’s major political parties have committed to advocating for the launch of local spot Bitcoin ETFs.
This is happening ahead of the general election on Apr. 10, which is heightening investor anticipation.
South Korea is also progressing with its cryptocurrency regulatory framework.
This is aimed at investor protection and standardization of crypto token issuance and information disclosure.
The first half of this framework is expected to be implemented in July.
Further developments are ongoing.
