In a concerted effort to enhance its digital asset legislation, South Korea’s Financial Supervisory Service (FSS) has embarked on the journey of formulating supplementary regulations to the Virtual Asset Users Protection Act passed earlier this year. These new regulations are anticipated to be ready by January, a timeline that places their readiness well before the law becomes operational.
Addressing the Concerns of the South Korean National Assembly Political Affairs Committee
The FSS, under the leadership of Lee Bok-hyeon, recently faced an audit by the South Korean National Assembly Political Affairs Committee. This was in response to concerns that South Koreans were suffering financial losses due to trading in foreign-issued cryptocurrencies, colloquially referred to as ‘burger coins’. The FSS is now tasked with establishing standards for listing procedures, internal controls, and issuance and distribution of virtual assets. A ‘virtual asset market supervision and inspection system’ is also on the cards.
Collaboration with the Digital Asset eXchange Association (DAXA)
Lee Bok-hyeon has expressed that the FSS is in talks with the Digital Asset eXchange Association (DAXA), an organization comprising of local crypto exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax. The aim is to address the perceived lack of regulatory detail in the legislation passed in June. While the law established criminal liability for violations, Lee believes it does not confer sufficient authority on his agency.
Plans for a Joint Virtual-Asset Crime Investigation Unit
South Korean law enforcement is also planning to set up a Joint Investigation Centre for Crypto Crimes, a unit that will consist of 30 staff members from various government agencies, including the FSS, National Tax Service, and Korea Customs Service. This move is expected to further strengthen the country’s stance on digital asset legislation.
With these developments, South Korea is positioning itself as a leader in the field of digital asset regulation. For those interested in tracking these changes, the cryptoview.io application could prove to be a valuable resource.
