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Dialogue about virtual currency regulation
It has been revealed that Lee Bok-hyun, director of the Financial Supervisory Service (FSS), plans to visit US Securities and Exchange Commission (SEC) Chairman Gary Gensler next month. Local media “Chosun Biz” reported on the 18th.
In South Korea, laws regarding virtual currencies are scheduled to go into effect next year. The two will share the current state of the virtual currency market and have a dialogue regarding supervision.
The schedule and agenda are still being finalized, but it appears that they will discuss topics such as the direction of regulations regarding virtual currencies and the cooperative structure between the two countries. The securities nature of virtual currencies is also expected to be a subject of dialogue.
The SEC has previously sued major exchanges such as Coinbase and Binance citing multiple examples of stocks that are equivalent to securities. If South Korean authorities determine that a particular stock is a security, existing laws may apply to that stock and related services.
connection: SEC lawsuit between Binance and Coinbase | Summary of the current state of virtual currency regulation and industry reaction
What is SEC?
Abbreviation for “Securities and Exchange Commission,” a U.S. government agency that supervises trading in securities such as stocks and bonds. The SEC’s mission is to “protect investors,” “maintain fair, orderly, and efficient markets,” and “promote capital formation.”
Virtual currency glossary
connection: “South Korean investors own a total of 14 trillion yen worth of virtual currency overseas,” the National Tax Agency reports.
Situation in South Korea
Virtual currency trading is active in South Korea. The phenomenon in which virtual currency prices deviate from those in other countries has been given the name “Kimchi Premium.”
connection: Cryptocurrency ASTR (ASTR) price soared by about 90% at one point due to listing on South Korea’s largest company Upbit
On the other hand, there is currently no clear law regulating virtual currencies in the country. South Korean authorities were also busy responding to the Tera riots that occurred last year.
connection: South Korean authorities freeze Terra co-founder’s assets worth 15 billion yen = report
Regarding regulations, it was previously reported that the Diet approved the “Virtual Asset User Protection Act” in June of this year, which will then be forwarded to the government and is expected to take effect within a year. According to current reports, the law is expected to come into effect in July next year.
connection: South Korea’s Busan city is serious about developing the Web3 industry and plans to establish an exchange
The post South Korean Financial Supervisory Service head to visit US SEC Chairman Gensler next month to discuss virtual currency regulations = report appeared first on Our Bitcoin News.
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