[Bitcoin Now] Drops to 67 Million Won Range... SEC Chairman Says "Exchange Regulation Law Needed"

Gary Gensler "No Regulatory Agency for Exchanges, Vulnerable to Fraud or Manipulation"
Goldman Sachs Launches Bitcoin Derivatives... Aiming to Protect Customers from Volatility

[Image source=AP Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has fallen to the 67 million KRW range. It appears that remarks by Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), regarding cryptocurrency exchange regulations had a negative impact.

According to the domestic cryptocurrency exchange Upbit, as of 2:20 PM on the 7th, Bitcoin recorded 67.45 million KRW, down 1.91% from the previous day.

Chairman Gensler's assertion of the need to regulate the cryptocurrency market acted as a negative factor. On the 6th (local time), according to U.S. economic media Bloomberg, Gensler appeared before the House Financial Services Committee hearing and stated, “There is no regulatory body for cryptocurrency exchanges, leaving investors vulnerable to fraud and manipulation,” adding, “The SEC is preparing guidelines related to cryptocurrency custody, but Congress needs to step in and regulate.” He emphasized that if cryptocurrency exchanges are regulated by the SEC or the U.S. Commodity Futures Trading Commission (CFTC), it would ultimately increase trust and create a virtuous cycle.

Chairman Gensler had previously hinted at the need for regulation. Earlier, on March 2, during his Senate confirmation hearing, Gensler stated, “As the cryptocurrency market rapidly evolves, the SEC will establish clear guidelines and standards.” At that time, Bitcoin rose 3.45% on expectations that regulation would integrate it into the institutional framework.

Meanwhile, the major U.S. investment bank Goldman Sachs has launched derivatives linked to Bitcoin prices. On the 7th, Bloomberg reported that Goldman Sachs introduced Bitcoin derivatives that can be cash-settled using the Non-Deliverable Forward (NDF) method. NDF is a contract where only the difference between the agreed price and the market price after a certain period is paid, allowing participation in trading with less capital than typical futures contracts. Goldman Sachs explained, “Institutional investor demand in the cryptocurrency market has recently increased significantly,” adding, “We launched derivatives to protect clients from Bitcoin’s volatility, which is a downside.”