The chief of South Korea's financial watchdog is planning a visit to the United States in order to discuss cryptocurrency regulation with Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC). The focus of the discussion will be on the recent approval of spot bitcoin exchange-traded funds (ETFs) by the SEC. The chief emphasized the importance of the SEC's policies on the global scale.
South Korea's Financial Supervisory Service (FSS) Governor to Engage in Crypto Regulation Discussions
Lee Bok-hyun, the Governor of South Korea's Financial Supervisory Service (FSS), announced his intention to visit major financial markets in 2024, including the United States. During these visits, the FSS Governor plans to hold discussions on key regulatory issues, particularly those related to the cryptocurrency industry and spot bitcoin ETFs. In a Q&A session with reporters, he stated:
"I will meet with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on … such as virtual asset issues and bitcoin spot ETFs."
The FSS Governor emphasized the importance of the SEC's policies on a global scale and the need for discussions between himself and Chairman Gensler.
After facing years of rejections, the US Securities and Exchange Commission (SEC) finally approved 11 spot bitcoin ETFs on January 10. Ten of these ETFs began trading the following day, including Grayscale's Bitcoin Trust (GBTC) and Blackrock's Ishares Bitcoin Trust (IBIT), the world's largest asset manager.
However, South Korea has yet to approve any spot bitcoin ETFs. Currently, virtual assets are not recognized as financial products in the country. As a result, the launch of a spot bitcoin ETF would be considered a violation of the Korean Capital Market Act, which mandates that ETFs track underlying assets such as stocks and bonds.
What are your thoughts on the South Korean regulator's plan to discuss crypto regulation with SEC Chair Gary Gensler, specifically regarding spot bitcoin ETFs? Let us know in the comments section below.
Frequently Asked Questions
Can I keep physical gold in an IRA?
Gold is money and not just paper currency. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Today, Americans prefer precious metals like silver and gold to stocks and bonds. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
One reason is that gold historically performs better than other assets during financial panics. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. If your stock portfolio goes down, you still own your shares. If you have gold, it will still be worth your shares even if the company in which you invested defaults on its debt.
Finally, gold offers liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to profit from short-term fluctuations on the gold market.
How does a gold IRA work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase physical bullion gold coins at any point in time. You don't have a retirement date to invest in gold.
You can keep gold in an IRA forever. You won't have to pay taxes on your gold investments when you die.
Your heirs can inherit your gold and avoid capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
First, an individual retirement account will be set up to allow you to open a golden IRA. After you have done this, an IRA custodian will be assigned to you. This company acts as a middleman between you and the IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
You'll have to pay taxes if you take your gold out of your IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. However, there are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. A violation of this rule can lead to severe financial consequences.
Should You Get Gold?
Gold was once considered an investment safe haven during times of economic crisis. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
This could be changing, according to some experts. They believe gold prices could increase dramatically if there is another global financial crises.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
These are some important things to remember if your goal is to invest in gold.
- First, consider whether or not you need the money you're saving for retirement. It is possible to save enough money to retire without investing in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each one offers different levels security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. It is possible to lose your gold coins.
You should do your research before buying gold. Make sure to protect any gold you already own.
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These precious metals are extremely rare and valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used for precious metals. Bullion refers simply to the physical metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This means you'll receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. You pay only a small percentage of your gains tax. You can also access your funds whenever it suits you.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
Tips to Invest in Gold
Investing in Gold remains one of the most preferred investment strategies. There are many benefits to investing in gold. There are many ways to invest gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
Before you buy any type of gold, there are some things that you should think about.
- First, verify that your country permits gold ownership. If you have permission to possess gold in your country, you can then proceed. You can also look at buying gold abroad.
- Secondly, you should know what kind of gold coin you want. There are many options for gold coins: yellow, white, and rose.
- You should also consider the price of gold. It is best to start small and work your way up. You should diversify your portfolio when buying gold. Diversify your investments in stocks, bonds or real estate.
- Last but not least, remember that gold prices fluctuate frequently. Be aware of the current trends.
By: Kevin Helms
Title: South Korean Regulator to Discuss Crypto Regulation with US SEC Chair Gary Gensler
Sourced From: news.bitcoin.com/south-korean-regulator-plans-to-discuss-crypto-rules-with-us-sec-chair-gary-gensler/
Published Date: Wed, 07 Feb 2024 03:30:59 +0000