The Chairman of the South Korean Financial Services Commission is planning a meeting with US SEC Chairman Gary Gensler. According to the statement, Non-Fungible Tokens and Bitcoin will be on the table. Meanwhile, the parties marked May in the meeting calendar.
South Korean officials will meet with Gensler: The topic is NFT and Bitcoin
cryptokoin.comAs you follow from , many countries are taking steps regarding crypto regulations. The market is undoubtedly following the US SEC’s moves closely in this regard. The SEC’s approval of spot Bitcoin ETFs has given new momentum to the market. The head of South Korea’s financial watchdog will meet with Gary Gensler, chairman of the United States Securities and Exchange Commission, in May this year, according to a local media report. The meeting will focus on the classification of Non-Fungible Tokens (NFT). Additionally, the parties will discuss the approval of spot Bitcoin exchange-traded funds.
Topic of discussion: Are NFTs virtual assets or not?
South Korea does not currently classify NFTs as “virtual assets,” South Korean news outlet Edaily reported. Because the government sees the impact of NFTs on financial markets as minimal compared to cryptocurrencies. Governor Lee Bok-hyun of the Financial Supervisory Service reportedly plans to discuss with Gensler whether NFTs should be legally classified as a virtual asset, as speculative behavior surrounding NFTs has increased along with the value of major cryptocurrencies.
Classifying NFTs as virtual assets could give local financial regulators jurisdiction over such tokens, whose issuers and distributors would likely face strict regulatory requirements imposed on local crypto service providers. The country’s first requirements for cryptocurrency exchanges came into force in September 2021. During this period, 34 exchanges, accounting for more than half of the local crypto trading platforms, were closed due to their failure to meet the requirements.
Approval of spot Bitcoin ETFs will also be on the table!
According to Edaily, Gensler and Governor Lee will also discuss the approval of spot Bitcoin ETFs in South Korea. The country restricts local institutions from launching crypto-related products. It also prohibits companies from brokering offshore-based spot Bitcoin ETFs. However, both South Korea’s ruling and opposition political parties have announced plans to commit to the launch of local spot Bitcoin ETFs ahead of the general elections on April 10. Thus, they increased the expectations among local investors.
Meanwhile, South Korea is working on a regulatory framework focused on protecting crypto investors. These regulations are expected to come into force in July 2024. The second half, which focuses on standardizing crypto token issuance and information disclosure, is currently in development.
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