Governor Lee Bok-hyun of South Korea's Financial Supervisory Service is set to meet with U.S. SEC Chairman Gary Gensler to address regulatory issues regarding NFTs and spot Bitcoin ETFs in May.
Chief of the Financial Oversight Authority in South Korea, Governor Lee Bok-hyun, is slated to engage in discussions regarding significant regulatory matters with Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), come May.
The topics up for deliberation encompass the potential categorization of non-fungible tokens (NFTs) as virtual assets and the authorization of spot bitcoin exchange-traded funds (ETFs) within South Korea.
In contrast to cryptocurrencies, South Korea currently does not acknowledge NFTs as virtual assets, citing their perceived negligible influence on financial markets.
However, South Korea's stance may shift as speculative activities surrounding NFTs escalate, aligning with the surging valuation of major cryptocurrencies. The reclassification of NFTs as virtual assets could expand regulatory scrutiny onto their issuers and distributors, imposing rigorous requirements akin to those faced by local cryptocurrency service providers.
In September 2021, the enforcement of fresh regulatory benchmarks resulted in the shuttering of 34 cryptocurrency exchanges; more than half of the nation's platforms failed to meet the stipulated criteria.
The discourse between Lee and Gensler will delve into the potential endorsement of spot Bitcoin (BTC) ETFs within South Korea, where existing regulations hinder local institutions from introducing or facilitating overseas-based crypto products.
Despite these restrictions, South Korea's major political factions have pledged to champion the introduction of domestic spot Bitcoin ETFs ahead of the forthcoming general election on April 10, intensifying investor expectations.
Furthermore, South Korea is making strides in refining its cryptocurrency regulatory framework, with a focus on safeguarding investors and standardizing the issuance of crypto tokens and disclosure of information. The initial phase of this framework is slated for implementation in July, with ongoing developments thereafter.