The chief of South Korea's financial regulatory body is set to visit the United States to engage in discussions about cryptocurrency regulations with Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC). The focus of the conversation will be on the SEC's recent approval of spot bitcoin exchange-traded funds (ETFs). The South Korean official emphasized the significance of the SEC's policies and their impact on the global financial landscape.
South Korea Aims to Discuss Crypto Regulation with SEC Chair Gary Gensler
Lee Bok-hyun, the governor of the Financial Supervisory Service (FSS) in South Korea, announced his plans to visit prominent financial markets, including the US, in 2024, according to local media reports.
During his visits, the FSS governor intends to hold discussions on crucial regulatory matters, particularly those related to the cryptocurrency industry. The spotlight 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."
He further emphasized the importance of the SEC's policies and the need for a meeting between himself and Gary Gensler this year.
After multiple rejections, the US Securities and Exchange Commission (SEC) gave its approval to 11 spot-bitcoin exchange-traded funds (ETFs) on January 10. Ten of these ETFs commenced trading the following day. Notable examples include Grayscale's Bitcoin Trust (GBTC), which converted into a spot-bitcoin ETF, and Ishares Bitcoin Trust (IBIT) managed by Blackrock, the world's largest asset manager.
South Korea has yet to approve any spot bitcoin ETFs. Currently, virtual assets do not fall under the category of financial products in the country. Consequently, the introduction 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 regulations with SEC Chair Gary Gensler, specifically addressing issues surrounding spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
What precious metal is best for investing?
Answering this question will depend on your willingness to take some risk and the return you seek. Gold is a traditional haven investment. However, it is not always the most profitable. You might not want to invest in gold if you're looking for quick returns. You should invest in silver if you have the patience and time.
If you don't care about getting rich quickly, gold is probably the way to go. If you want to invest in long-term, steady returns, silver is a better choice.
What proportion of your portfolio should you have in precious metals
This question can only be answered if we first know what precious metals are. Precious elements are those elements which have a high price relative to other commodities. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
The general trend is for precious metals to increase in price with the overall market. That said, they do not always move in lockstep with each other. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors expect lower interest rate, making bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. 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. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
How much should your IRA include precious metals
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don’t need to have a lot of money to invest. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might also be interested in buying physical coins, such bullion rounds or bars. Also, you could buy shares in companies producing precious metals. Your retirement plan provider may offer an IRA rollingover program.
You'll still get the benefit of precious metals no matter which country you live in. Although they aren’t stocks, they offer the possibility for long-term gains.
Their prices are more volatile than traditional investments. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
Is it a good idea to open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. There are no ways to recover the money you lost in an investment. All your investments can be lost due to theft, fire or flood.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These items are timeless and have a lifetime value. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Consider a reputable business that offers low rates and good products when opening an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
Remember that you will not see any returns unless you are retired if you open an Account. Don't forget the future!
How much money should I put into my Roth IRA?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. You can't withdraw money from these accounts before you reach the age of 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, your principal (the deposit amount originally made) is not transferable. You cannot withdraw more than the original amount you contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. You will pay income taxes when you withdraw your earnings. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's also assume that you make $10,000 per year from your Roth IRA contributions. On the earnings, you would be responsible for $3,500 federal income taxes. You would have $6,500 less. You can only take out what you originally contributed.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types if Roth IRAs: Roth and Traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs don't allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Is gold a good investment IRA?
For anyone who wants to save some money, gold can be a good investment. It's also a great way to diversify your portfolio. There's more to gold that meets the eye.
It has been used throughout the history of currency and remains a popular payment method. It's sometimes called “the world's oldest money”.
But gold is mined from the earth, unlike paper currencies that governments create. It is very valuable, as it is rare and hard to create.
The supply and demand for gold determine the price of gold. The strength of the economy means people spend more, and so, there is less demand for gold. As a result, the value of gold goes up.
On the flip side, people save cash for emergencies and don't spend it. This increases the production of gold, which in turn drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. You'll reap the benefits of investing in gold when the economy grows.
In addition to earning interest on your investments, this will allow you to grow your wealth. Additionally, you won't lose cash if the gold price falls.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads, Example, and Risk Metrics
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
cftc.gov
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was accepted worldwide and became popular due to its durability, purity, divisibility, uniformity, scarcity, and beauty. It was also traded internationally due to its high value. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. They decided to return some of the gold they had left to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. After World War I, however, many European countries started using paper money to replace gold. The value of gold has significantly increased since then. Even though the price fluctuates, gold is still one of best investments.
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By: Kevin Helms
Title: South Korean Regulator to Hold Talks with US SEC Chair Gary Gensler on Crypto Rules
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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