Lee Bok-hyun meets with Gensler, US SEC Chair... Discusses background of Bitcoin ETF approval

Strengthening Investigation and Cooperation on Unfair Trading in Securities and Virtual Assets
Discussion on Virtual Asset Legislative Trends with CFTC Chairman

Financial Supervisory Service Governor Lee Bok-hyun, who is on a business trip abroad for alcohol abstinence, met with Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC). The photo shows Governor Lee attending a meeting on the 18th of last month. Photo by Jo Yong-jun jun21@

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), who embarked on an overseas business trip this week, met with Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC). They discussed the background of the approval of the Bitcoin spot Exchange-Traded Fund (ETF) in the U.S. earlier this January, as well as ways to strengthen cooperation in investigating unfair trading related to securities and virtual assets. Discussions were also held with the U.S. Commodity Futures Trading Commission (CFTC) regarding legislative trends in virtual assets.

The FSS announced on the 16th that Governor Lee visited the U.S. SEC and CFTC on the 14th and 15th for high-level meetings.

Governor Lee exchanged views with Chairman Gary Gensler on joint financial supervisory issues between the two countries, including the background of the U.S. Bitcoin spot ETF approval, investigations into unfair trading related to securities and virtual assets, and strengthening cooperation. They also confirmed the necessity of close mutual cooperation.

With Rostin Behnam, Chairman of the CFTC, in-depth discussions were held on U.S. legislative trends in virtual assets and ways to enhance information sharing between the two countries. However, the FSS stated that detailed agendas and discussion contents would not be disclosed according to inter-agency mutual consultation.

Meanwhile, on the 13th, Governor Lee attended the Basel Committee on Banking Supervision (BCBS) meeting of financial supervisors and central bank governors (GHOS) held in Basel, Switzerland.

At this meeting, senior participants of the Basel Committee reviewed the implementation status of Basel III by member countries and evaluated that the adoption of Basel III in each country is making good progress. They also reiterated the importance of faithfully, consistently, and promptly implementing Basel III. Currently, about two-thirds of member countries plan to adopt all or most of the Basel III regulations within this year, while the remaining members plan to adopt them by next year. South Korea completed its adoption in January last year.

Additionally, the meeting agreed to postpone the originally planned enforcement date of the revised "Banking Sector Crypto-Asset Prudential Treatment Framework" from January 1, 2025, to January 1, 2026, by one year, in line with the rapid changes in the crypto-asset market.