The financial watchdog chief of South Korea is planning to visit the United States to hold discussions on crypto regulation with Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC). The primary focus of the meeting will be the recent approval of spot bitcoin exchange-traded funds (ETFs) by the SEC. The chief emphasized the importance of SEC policies and their impact on the global market.
South Korea Seeks Discussion on Crypto Regulation
According to local media reports, Lee Bok-hyun, the Governor of South Korea's Financial Supervisory Service (FSS), announced his intention to visit key financial markets in 2024, including the United States.
During these visits, the FSS chief plans to engage in discussions on various regulatory issues, particularly those related to the cryptocurrency industry. The focus will be on spot bitcoin exchange-traded funds (ETFs). In a Q&A session with reporters, Lee Bok-hyun 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 discussing the impact of SEC policies on the global market. He highlighted the need for a meeting with Gary Gensler to address these matters.
The US Securities and Exchange Commission (SEC) recently approved 11 spot-bitcoin exchange-traded funds (ETFs) on January 10, following several years of rejections. Ten of these ETFs commenced trading the following day, including Grayscale's Bitcoin Trust (GBTC), which converted into a spot-bitcoin ETF, and Ishares Bitcoin Trust (IBIT) by Blackrock, the world's largest asset manager.
On the other hand, South Korea has yet to approve any spot bitcoin ETFs. Virtual assets are currently not defined as financial products in the country. Therefore, the launch of a spot bitcoin ETF would be considered a violation of the Korean Capital Market Act, which requires ETFs to track underlying assets such as stocks and bonds.
What are your thoughts on the South Korean regulator's plan to discuss crypto regulation and spot bitcoin ETFs with SEC Chair Gary Gensler? Share your opinions in the comments section below.
Frequently Asked Questions
How much should you have of gold in your portfolio
The amount you make will depend on the amount of capital you have. A small investment of $5k-10k would be a great option if you are looking to start small. As your business grows, you might consider renting out office space or desks. You don't need to worry about paying rent every month. It's only one monthly payment.
Consider what type of business your company will be running. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. You may get paid just once every 6 months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I recommend starting with $1k-$2k of gold and growing from there.
How to Open a Precious Metal IRA
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. You must complete Form 8606 to open an account. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should be completed within 60 days after opening the account. Once this has been completed, you can begin investing. You can also choose to pay your salary directly by making a payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS stipulates that you must have earned income and be at least 18-years old. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. You must also contribute regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. But, you'll only be able to purchase physical bullion. This means you won’t be able to trade stocks and bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option is available from some IRA providers.
However, investing in precious metals via an IRA has two serious drawbacks. They aren't as liquid as bonds or stocks. It is therefore harder to sell them when required. Second, they don’t produce dividends like stocks or bonds. You'll lose your money over time, rather than making it.
How much of your portfolio should be in precious metals?
To answer this question we need to first define precious metals. Precious Metals are elements that have a very high relative value to other commodities. This makes them valuable in investment and trading. Gold is by far the most common precious metal traded today.
There are many other precious metals, such as silver and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also unaffected significantly by inflation and Deflation.
The general trend is for precious metals to increase in price with the overall market. But they don't always move in tandem with one another. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Because they are rare, they become more pricey and lose value.
You must therefore diversify your investments in precious metals to reap the maximum profits. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- (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)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
cftc.gov
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
investopedia.com
irs.gov
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. It was also traded internationally due to its high value. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This resulted in a decline of foreign currency demand and an increase in the price. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. To do this, they decided that some of their excess gold would be sold back to Europe.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. Since then, the price of gold has increased significantly. Today, although the price fluctuates, gold remains one of the safest investments you can make.
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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
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