South Korea Finance Chief To Talk Crypto With Gary Gensler

Yoo Bok-hyun, the head of South Korea’s Financial Supervisory Services (FSS) is set to visit the U.S. Securities and Exchange Commission (SEC) to engage in discussions about cryptocurrency with SEC Chair Gary Gensler.

The primary agenda of this visit revolves around sharing critical insights into the current dynamics of the virtual asset market and deliberating on the strategic direction of regulatory policies.

South Korea Continues Research Into Crypto Regulations

According to a recent report, the overarching theme of the trip is discussions on the management and supervision of the virtual asset market.

As South Korea continues with its efforts to regulate cryptocurrency, Yoo acknowledges the need to fortify the nation’s regulatory framework.

This comes amid BeInCrypto recently reporting that South Korea FSS is preparing to implement robust regulations for crypto in July 2024.

Meanwhile, the specifics of regulatory plans for the dynamic virtual asset market remain a work in progress.

Read more: How Does Regulation Impact Crypto Marketing? A Complete Guide

The visit to the SEC, signifies South Korea’s ambition to gather insights into effective methods of managing and supervising the crypto sector.

Earlier this year, BeInCrypto highlighted South Korea’s strengthened regulations concerning crypto exchanges and their required reserve holdings.

According to local reports, the new rules outline at least 3 billion won fund (approximately $2.26 million).

Gensler’s Strong Belief That All Crypto’s Are Securities

This move comes on the heels of a recent organizational overhaul by the Financial Services Commission, aimed at bolstering supervision, inspection, market monitoring, and institutional improvements for virtual asset operators.

However, the discussions is expected to center around the determination of the securities nature of virtual assets.

This issue has gained paramount importance in South Korea with the enforcement of the Virtual Asset Act. The U.S., guided by the “Howey Test,” evaluates the securities nature of virtual assets based on whether investors expect profits from the efforts of others.

The report notes the SEC Chairman Gensler’s stance. It states his belief considering nearly all virtual assets except Bitcoin as securities, adds a layer of complexity to the regulatory discourse.

However, with the latter half of next year poised to see heightened debates over the securities nature of virtual assets, Yoo’s proactive approach in seeking alternatives during this visit positions South Korea at the forefront of shaping global crypto regulations.

Read more: Crypto Regulation: What Are the Benefit and Drawbacks?