South Korean FSS And US SEC Discuss Crypto Regulations

The SEC and South Korean financial regulatory authorities will discuss crypto regulation. (Photo; Doc. Cryptured)

JAKARTA - The South Korean Financial Services Authority (OJK) or the Financial Supervisory Service (FSS) will hold a meeting with the United States Securities and Exchange Commission (SEC) in January 2024. This meeting aims to discuss developments and policies related to the crypto market in the two countries as reported by South Korean media, Chosunbiz, on December 18, 2023.

The meeting will be attended by Lee Bok-hyun, Head of Financial Supervisory Service (FSS), the institution responsible for the supervision of the financial sector in South Korea, and Gary Gensler, Chair of the SEC, the agency that regulates the capital market in the United States. This meeting is considered important given the dynamics of crypto regulation in both countries.

In the United States, the SEC is reviewing several applications to launch a futures Bitcoin exchange product, which could increase liquidity and adoption of crypto assets. The SEC is also evaluating a request to launch a crypto spot exchange fund (ETF), which could make it easier for investors to buy and sell shares representing a number of cryptocurrencies.

Meanwhile in South Korea, FSS is preparing a new policy that will take effect in July 2024, which will regulate crypto investors and exchanges. This policy will establish requirements for investors, such as investment limits, tax reports, and identity verification. This policy will also set standards for crypto exchanges, such as business licenses, security systems, and audits.

The meeting will also discuss the case of Do Kwon, co-founder of Terraform Labs, a South Korean-based crypto company. Do Kwon is suspected of committing fraud and offering unregistered securities by selling LUNA tokens. LUNA's crypto asset is a digital asset belonging to the Terraform Labs platform. Do Kwon faces lawsuits in several countries, including the United States.

The meeting of FSS and SEC is expected to provide a new direction on future crypto regulation, which could affect crypto industries and investors in both countries.