US and UK Embrace Cryptocurrency... SEC "Considering Registration of Trading Platforms"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Movements to bring virtual currencies under the regulatory authority of financial authorities are continuing in the United States and the United Kingdom. As the virtual currency market rapidly grows, efforts are accelerating to establish a foundation for investor protection and to seize market leadership.

On the 4th (local time), according to the Wall Street Journal (WSJ) and others, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), stated at an event held at the University of Pennsylvania Law School that he is considering registering virtual currency trading platforms as exchanges with the authorities. He emphasized, "Virtual currency platforms play a role similar to other regulated exchanges," adding, "Therefore, investors should be protected in the same way."

This statement came amid a conflict between the SEC and Coinbase, the largest virtual currency exchange in the U.S. Last month, the SEC raised issues, stating that the securities sold by Coinbase were not registered with the SEC and that a customer protection framework was not established. Chairman Gensler has long emphasized the necessity for virtual currency trading platforms like Coinbase to be supervised by the SEC, but the industry has opposed this. The virtual currency industry has been lobbying the U.S. Congress to avoid SEC oversight.

Chairman Gensler instructed SEC staff to devise ways to register cryptocurrency trading platforms so that customers' assets can be protected, mentioning that regulatory authority might need to be separated from other businesses. Generally, in the stock market, when investors place buy or sell orders through brokers, the brokers execute these orders, but in the cryptocurrency market, individual investors trade directly on the platforms, which may imply differences in regulatory approaches.

Alongside the U.S., the United Kingdom is also accelerating efforts to embrace virtual currencies. John Glen, UK Treasury Minister, announced at a fintech (finance + technology) event that Rishi Sunak, Chancellor of the Exchequer, has requested the UK Royal Mint to issue non-fungible tokens (NFTs) before summer. Details on the quantity and form of issuance will be disclosed soon.

Minister Glen explained that the UK government is promoting an NFT initiative to lead the virtual currency market and is taking several steps to bring digital assets under regulatory frameworks. This includes legislation to introduce stablecoins as a payment method using fiat currency. Glen stated, "Regulations should not be seen as fixed and inflexible," adding, "We are thinking of it as a ‘regulatory code’ similar to computer code that can be modified and rewritten as needed."

This content was produced with the assistance of AI translation services.