Cryptocurrency has changed the financial dynamics with advanced and decentralised solutions as opposed to conventional monetary systems. Since the emergence of Bitcoin (BTC) in 2009, the blockchain-based cryptocurrency has changed how we interact with money. With improved security and complete control over your financial assets, crypto has attracted millions of users worldwide.
The decentralisation of cryptocurrency is the main component of its significance, allowing developers, miners, and investors to avoid intermediaries and central authorities when making transactions. Thus, instant and borderless monetary transactions became convenient for users globally. However, the recurring scams and fraud in the crypto world have created a chaotic situation, making governments consider strict regulations.
Therefore, Gary Gensler, the chairperson of the Securities and Exchange Commission (SEC) of the U.S., has come forward to accept Bitcoin Exchange-Traded Funds (ETFs). Bitcoin ETF is a significant and efficient solution to balancing the effect of decentralisation and cryptocurrency. South Korean financial authorities will meet Gary Gensler to discuss ETFs and their significance in the financial world.
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Gary Gensler to Meet Lee Bok-Hyun
Lee Bok-Hyun is the chairman of the leading South Korean financial regulator, the Financial Supervisory Service (FSS). The FSS issued a business strategy for 2024 on February 5 in Seoul, the capital city of South Korea. In this plan, Lee Bok-Hyun looks forward to observing various high-performing business markets in the world, including New York.
The official visits of the FSS aim to discuss multiple financial regulations, including cryptocurrency and other digital assets, for enhancing South Korea’s fiscal market. In the second quarter of 2024, the FSS chairperson will meet Gary Gensler to exchange thoughts about the BTC ETF and its impact on the existing financial policies.
It is important to note that the South Korean authorities do not allow the trade of BTC ETFs, while the SEC approved around 11 ETFs on January 10 2024. The reason behind this denial of the latest crypto innovation is to review and observe regulations related to BTC ETF beforehand. The meeting between the FSS and Gary Gensler of the SEC will provide South Korean crypto enthusiasts with a signal on whether to invest in crypto ETFs or not.
Bitcoin ETF – A Groundbreaking Financial Step
The latest innovation in the financial world is the BTC ETF. It blurs the line between traditional investment methods and Decentralised Finance (DeFi) by introducing an alternative investment vehicle for retail and institutional investors. The SEC chief, Gary Gensler, approved some of the BTC ETFs after rejecting them several times due to the risk of market manipulation.
Crypto ETFs are the best way to allow crypto enthusiasts to manage risks related to decentralised cryptocurrencies, as they lack the supervision of central authorities. Furthermore, you can invest and buy BTC and altcoins directly, but doing so exposes you to uncalculated risks, making you lose massive amounts of money.
The market volatility is another reason to introduce a solution that guarantees safety to investors and crypto enthusiasts. BTC hit an all-time high of 65,000 U.S. dollars in 2021, but it hit the 16,000 U.S. dollars mark in 2022. This frightening price fluctuation attracted authorities to consider BTC ETFs. They are listed on stock exchanges like fiat currency and stocks. Investors can own shares of a well-managed BTC with liquidity and market access.
SEC’s Ruling Regarding Financial Instruments
SEC Chair Gary Gensler promotes a safe and fair ecosystem for investors in the financial space. He maintains a strong narrative to support retailers and institutional investors in their fiscal ventures and asks them to consider investment instruments that comply with federal laws and regulations.
Gary Gensler discusses that crypto is a speculative asset class where investors put in their money through exchanges and trading platforms that may not be registered with the SEC. It promotes a gap in the investor protection agenda of the SEC, exposing them to several vulnerabilities. Therefore, Gary is confident in making cryptocurrency compliant with relevant laws to make investors safe.
You can witness his dedication to refraining the financial market from crypto scams and fraud via his approval of the BTC ETF. These financial vehicles are under the supervision of the SEC to maintain market integrity. Through a strict policy of approving a crypto ETF, you can enjoy a guarantee of transparency, custody, and investor protection without worrying about market manipulation.
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South Korea About Cryptocurrency
In the Asia-Pacific region, South Korea stands tall when it comes to robust regulations and facilities for cryptocurrency. With a well-established financial regulatory authority, FSS, South Korea offers a keen eye to monetary risks and vulnerabilities, safeguarding investors and asset holders.
It follows the U.S. in terms of implementing crypto laws. When the U.S. banned using credit and debit cards for crypto payments, South Korea restricted users from doing so. Click here to learn more. Furthermore, crypto mixing services or crypto tumblers are illegal in both regions as they mix multiple crypto assets to mess up the origin and owners of the funds, allowing malicious actors to operate their scams without regulatory fear.
In 2017, South Korea banned Initial Coin Offerings (ICO), as many crypto scams happened because of it. ICO refers to the fundraising process for an independent developer’s launch of a new crypto token. As it lacks backing up from any credible crypto exchange, South Korea has put an end to ICOs, ensuring investor protection in the crypto space.
Crypto ETFs to Revolutionise the Financial Trends
Cryptocurrency is a futuristic technological innovation in the financial world. Bitcoin, Ethereum, and other crypto have intervened in the conventional monetary market, thanks to their decentralised and transparent mechanism. However, the regulatory gap in the DeFi has always popped up in the crypto space.
SEC Chair Gary Gensler has approved several BTC ETFs recently. Crypto ETFs are the best way to bridge the gap between conventional and decentralised financial systems. They will revolutionise monetary trends, offering traders and investors safe and lucrative investment tools.