The Second Phase of South Korea’s Virtual Asset Legislation
South Korean financial authorities are taking steps to enhance regulations and protect users in the crypto market. The country’s recent passage of the ‘Virtual Asset Protection Act’ laid the foundation for user protection and the regulation of unfair trade practices. The focus now is on addressing issues related to financing and virtual asset issuance through ICOs. The Financial Services Commission (FSC) has confirmed that a Joint Task Force on Digital Assets met to discuss the outline of the second stage of South Korea’s crypto legislation.
Key Points:
- The second phase of legislation will address conflicts of interest in the issuance process, stablecoin regulatory systems, and more.
- The first bill concerning virtual assets was successfully passed in June, focusing on user asset protection and regulation of unfair trade practices.
- Legislators recognized the need for further legislation and requested the FSC to conduct research services.
- The research service is expected to be completed by August and will cover crucial aspects such as resolving conflicts of interest and establishing regulations for stablecoins.
- Concerns have been raised about the current legislative framework’s application to virtual asset depositing and management operators.
The Financial Services Commission will determine whether to regulate depository and operating businesses through enforcement decrees.
Hot Take:
South Korea’s initiative to strengthen virtual asset legislation shows a strong commitment to protecting crypto market users and addressing issues related to financing and virtual asset issuance. By conducting research on conflicts of interest, stablecoin regulations, and other crucial aspects, South Korea is working towards a more regulated and transparent crypto industry. However, the effectiveness of these regulations will rely on thorough enforcement and ongoing monitoring to ensure compliance and protect investors.
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