In introducing a domestic Bitcoin ETF, we are taking an important step in the global cryptocurrency market. At the center of these developments is a highly anticipated meeting between Lee Bok-hyun, head of the Financial Supervisory Service of South Korea, and Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC). This meeting is not simply a meeting between two people, but an important moment in Korean finance, with the potential to ripple throughout the world.
Background and Current Situation
The financial world is abuzz as South Korea prepares two ambitious comprehensive cryptocurrency regulatory frameworks scheduled for implementation in July 2024. This framework is not only a regulatory blueprint but also a testament to South Korea's commitment to navigating the complex landscape of digital currencies. At the center of this plan is legislative guidance to make the classification of virtual assets clear and systematic. Once this framework takes shape, the world of finance will be watching with anticipation for its transformative impact.
Major regulatory improvement plans
Management Verification: South Korea's Financial Supervisory Service is seeking authority to approve new management of cryptocurrency companies. The changes force cryptocurrency companies to report all personnel changes to regulators before new executives begin work, whose roles will only begin after approval by the Financial Supervisory Service.
Impact on VASP License Renewals: This amendment may impact Virtual Asset Service Provider (VASP) license renewals. In particular, the Financial Supervisory Service seeks to secure the authority to temporarily suspend VASP licensing reviews if the person in charge is under investigation by local or international authorities.
Public Participation: The Financial Supervisory Service is accepting public comments on these proposals until March 4, 2024, demonstrating a transparent and inclusive regulatory approach.
Implementation Schedule : After procedural steps, review by relevant ministries, and resolution by the Financial Supervisory Service, the amendments are scheduled to be implemented by the end of March 2024. The new rules will take effect with VASP renewal reports due to be submitted in the second half of 2024.
Details of upcoming meetings
This topic develops in an interesting way through the details of a meeting expected to attract public attention. President Lee Bok-hyeon plans to establish a dialogue with Gary Gensler in the second quarter to build a dialogue that can redefine the dynamics of the cryptocurrency market. The main agenda focuses on 'Korea Discount Measures' and Bitcoin ETF and includes strategic discussions on corporate value improvement programs. This information was revealed at the 2024 business plan presentation held at the Financial Supervisory Service in Yeouido, Seoul. Following this, in a Q&A with reporters, the chairman emphasized the importance of this meeting and said that discussions on virtual assets and Bitcoin ETF were especially important.
