US, UK Financial Working Group Discusses Crypto Oversight. The US-UK Financial Regulation Working Group (FRWG) gathered in London for its ninth official meeting on January 31 and issued a statement summarizing discussions on February 5.
Key topics discussed by the group include crypto regulation and central bank digital currencies (CBDC).
“Representatives provided an update on the latest developments in the crypto asset market and discussed international involvement in this sector,” read the statement, quoted from Bitcoin.com, Saturday (10/2/2024).
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This working group was established in 2018 to deepen bilateral regulatory cooperation with the aim of further improving financial stability, investor protection, fair, orderly and efficient markets, and capital formation in both jurisdictions.
The statement added that participants also discussed the publication of high-level Financial Stability Board (FSB) recommendations to encourage consistency, given the cross-border nature of crypto asset activity.
They also discussed the importance of this recommendation as jurisdictions implement their own frameworks, consistent with the FSB’s recommendations to avoid potential regulatory arbitrage.
“In addition, the Working Groups discussed recent developments in their respective work on central bank digital currencies (CBDCs), and the UK authorities provided an overview of the findings of their recent public consultation on the digital pound,” the statement explained.
As previously reported, South Korean financial regulators on Friday, January 12 2024 said the brokerage of the US Bitcoin Spot ETF may be illegal in the local market, as an official response to the US Securities and Exchange Commission’s approval of the Spot Bitcoin ETF.
“For domestic securities companies, any broker of Exchange Traded Funds Bitcoin spot registered overseas could breach the government’s current stance on virtual assets and the Capital Markets Act,” said the Financial Services Commission (FSC) in a statement, quoted from Yahoo Finance, Saturday (13/1/2024).
Several exchange-traded funds tied to spotbitcoin prices began trading in the US on Thursday, which was a watershed moment for a cryptocurrency industry that has sought regulatory approval for such financial products for more than a decade.
South Korea’s FSC added they will continue to review the regulatory landscape surrounding spot bitcoin ETF investments. Recently, in a significant move shaping the future of cryptocurrencies in South Korea, the FSC Services will release comprehensive guidelines, marking an important step in regulating virtual assets.
Meanwhile, this development is in line with global efforts towards crypto regulation, underscoring South Korea’s commitment to promoting transparency and preventing illicit activities in the crypto sector.
US, UK Financial Working Group Discusses Crypto Oversight. Meanwhile, this announcement follows revelations in mid-October that South Korea’s financial regulatory authorities were drafting new regulations for the virtual asset market, covering listing procedures, internal controls, and issuance and circulation volumes.
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Previously reported, the US Securities and Exchange Commission (SEC) has approved several Bitcoin spot exchange-traded funds (ETFs) after months of speculation.
Reporting from Coinmarketcap, Thursday, (11/1/2024), the Spot Bitcoin ETF proposed by the asset management company was approved simultaneously before the expected deadline of January 10, 2023.
There are a total of 13 Bitcoin ETF applicants namely BlackRock, Grayscale Investments, Ark Invest & 21Shares, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, Valkyrie, Global X, Hashdex, Franklin Templeton and Pando Asset Management.
Since 2013, many companies have failed to apply for Bitcoin exchange-traded funds. The SEC has repeatedly cited potential market manipulation in the spot market as a reason for rejection.
However, the SEC approved a Bitcoin futures ETF in October 2021, helping push Bitcoin to an all-time high of USD 69,000 or the equivalent of IDR 1 billion (assuming an exchange rate of IDR 15,562 per US dollar) in November 2021.
Over the past few months, there have been numerous meetings between ETF applicants and regulators, with amendments made to S1 filings such as creating shares for cash.
Notably, the filing includes a shared oversight agreement, with many naming US-listed cryptocurrency exchange Coinbase as a partner, to address concerns over spot market manipulation.
Bitcoin prices also increased along with optimism from ET Bitcoin approval. In trading on Thursday (11/1/2024) the price of Bitcoin managed to touch USD 47,441 or the equivalent of IDR 738.3 million.
As previously reported, the Securities and Exchange Commission (SEC) announced on Wednesday, January 10, 2024 that the US had permitted Bitcoin Spot ETF trading. Despite approving Bitcoin ETFs, the SEC still thinks crypto is not a good investment.
SEC Chairman Gary Gensler said that although funds holding commodities such as precious metals have consumer and industrial uses, Bitcoin is primarily a speculative and volatile asset.
In addition, according to Gensler, Bitcoin is also used for illicit activities including money laundering, sanctions evasion and terrorist financing.
“While we approve of the listing and trading of bitcoin ETP spot shares, we do not approve or support Bitcoin. “Investors must remain careful about the various risks associated with bitcoin and products whose value is linked to crypto,” said Gensler, quoted from Yahoo Finance, Thursday (11/1/2024).
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Cryptocurrencies like Bitcoin have been widely supported by financial influencers on social media, but some traditional investors, including Warren Buffett, are against them.
Bill Gates, founder of Microsoft, has also warned of people falling into this, who may not have much money to spare.
Bitcoin ETFs are expected to expand the popularity of cryptocurrencies because investors do not need to purchase the currency directly through specialized cryptocurrency exchanges.
Instead, the fund will allow retail investors to profit from Bitcoin price changes through the investment platforms they already use widely.
US, UK Financial Working Group Discusses Crypto Oversight. These new products mean fund providers such as BlackRock and Fidelity will effectively lend credibility to the idea of investing in cryptocurrencies.
