Lee Bok-hyun, the head of South Korea’s Financial Supervisory Service (FSS), is set to meet with Gary Gensler, chair of the United States Securities and Exchange Commission (SEC), this January. This meeting, as reported by Chosunbiz on December 18, marks a proactive step in discussing the current state of the cryptocurrency market and the potential direction for supervisory policies in this rapidly evolving sector.

A Critical Time for Crypto Regulation

The timing of this meeting is crucial, given the ongoing developments in both countries’ regulatory landscapes. Speculations are rife that the SEC might soon greenlight several spot Bitcoin exchange-traded products. In South Korea, July 2024 is expected to witness the implementation of new policies concerning crypto investors and the handling of their funds by exchanges. This period of regulatory evolution underscores the need for such high-level discussions.

Further complicating the regulatory scene is the case of Do Kwon, co-founder of Terraform Labs. With Kwon facing legal challenges in multiple countries, including a potential extradition to the United States, the discussion between Lee and Gensler gains additional complexity. It reflects the intricate web of international law and its intersection with the decentralized nature of cryptocurrencies.

Evolving SEC Stance under Gensler

Under Gary Gensler’s leadership, the SEC has cautiously approached the crypto market. The industry has awaited decisions on spot crypto exchange-traded funds (ETFs), especially for major cryptocurrencies like Bitcoin and Ether. However, the SEC has only approved ETFs tied to crypto futures. The meeting between Lee and Gensler could illuminate future regulatory approaches in this area.