[Weekly Blockchain] Major Blockchain News in the 2nd Week of January
Hello, this is the LEDGIS Team.
It’s time for [Weekly Blockchain], where we explore the latest hot topics in the blockchain market.
Shall we take a look together with LEDGIS today?
For detailed information on each news, you can refer to the respective articles.
👉 U.S. Securities and Exchange Commission (SEC) Officially Approves 11 Bitcoin Physical ETFs
According to a news1, the U.S. Securities regulatory authorities have officially approved the world’s largest cryptocurrency, Bitcoin, for a physically-backed exchange-traded fund (ETF).
The Securities and Exchange Commission (SEC) announced on the 10th (local time) through an official statement on its website that it approves the listing and trading of exchange-traded products (ETPs) based on physical Bitcoin.
Eleven physically-backed Bitcoin Exchange-Traded Funds (ETF) from Bitwise, Grayscale, Hashdex, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity, and Franklin Templeton have been approved.
Chairman Gary Gensler stated in the announcement, “Approving the listing and trading of Bitcoin spot ETP shares is the most sustainable path.” The statement officially used the term ‘spot ETP (Exchange-Traded Product)’ instead of ‘spot ETF (Exchange-Traded Fund).’
👉 Financial Supervisory Service (FSS) Initiates Supervision of Virtual Assets…”Proactive Measures for User Protection”
According to Yonhap News, the Financial Supervisory Service (FSS) announced on the 11th that it has launched the Virtual Asset Supervision Division and Virtual Asset Investigation Division, in anticipation of the enforcement of the Virtual Asset User Protection Act scheduled for July this year.
The FSS stated, “On the day when the U.S. Securities and Exchange Commission (SEC) approved the listing of Bitcoin spot Exchange-Traded Products (ETPs), the prices of virtual assets experienced significant volatility,” and mentioned, “As the need for user protection in high-risk virtual assets is increasing, we will actively respond.”
The Virtual Asset Supervision Division and Investigation Division operate with a total of 33 members across 6 teams. The teams consist of 8 IT specialists, 7 lawyers, 8 accountants, and other staff members.
The dedicated departments are planning to prepare internal control standards and operational systems for virtual asset service providers before the enforcement of the law. They will also establish infrastructure for investigating unfair trading practices.
👉 Ryu Sung-geol, “Concerns about Borrowing for Investment and Over-leverage with Bitcoin’s Entry into the U.S. Regulatory Domain… Need for a Two-Stage Law”
According to News1, lawmaker Ryu Sung-geol of the People Power Party expressed concerns about the approval of the BTC spot ETF by the U.S. Securities and Exchange Commission (SEC). He raised concerns about a potential resurgence of debt-fueled investment (빚투) and over-leverage (영끌) in the domestic market. As a response, he emphasized the need for a two-stage virtual asset law.
He expressed concerns, stating, “I am worried that situations involving debt-fueled investment and over-leverage may occur again. How long has it been since we experienced the Terra and Luna market crashes and the delisting of virtual assets like WEMIX? We have only legislated the Virtual Asset User Protection Act, which will be enforced in July, and the regulatory and supervisory system is not yet perfectly prepared. We need a two-stage virtual asset law that addresses the issuance, distribution, and promotion of the virtual asset industry.”
👉 Customs Agency Establishes ‘Illegal Virtual Asset Forex Trading Prevention Council’… Combating Illegal Forex Trading
According to the Financial News, on Monday, the Korea Customs Service announced the establishment of the “Cryptocurrency Illegal Foreign Exchange Trading Prevention Council” in collaboration with five major virtual asset service providers — Dunamu, Bithumb Korea, Coinone, Korbit, and Streami — along with their consortium called the Digital Asset Exchange Association (DAXA).
The council has been established to actively address ongoing illicit foreign exchange transactions linked to virtual assets through strengthened collaboration with relevant agencies and virtual asset service providers. Additionally, it was stated that the council has been set up to discuss cooperation methods with relevant organizations and gather opinions before the inclusion of virtual assets into the regulatory framework.
Today’s prepared news concludes here.
Thank you for joining us for this week’s edition of [Weekly Blockchain].
See you again next week!
