South Korea’s Financial Services Commission Proposes Regulatory Approval for Crypto Executives
The Financial Services Commission (FSC) of South Korea is considering a new proposal that would require executives in the crypto industry to obtain regulatory approval before assuming their roles. The FSC has published a document on its official website outlining plans for new improvements that would mandate regulatory clearance for new crypto business executives. Although the details of the proposal are subject to revision by the Ministry of Government Legislation, it is expected to take effect by Q1 2024.
FSC’s Broader Aim to Increase Authority
This regulatory move by the FSC goes beyond the crypto sector and demonstrates its intention to assert greater control over the financial market. FSC Chair Lee Bok-hyun emphasized the need to crack down on risky practices and prevent companies from passing on risks to consumers for short-term profits without proper risk management.
South Korean President’s Office Pushes for Spot Bitcoin ETFs
The South Korean President’s office has urged the country’s financial regulator to reconsider allowing spot Bitcoin exchange-traded funds (ETFs) within South Korea. Despite previous warnings from the FSC against facilitating transactions in foreign spot Bitcoin ETFs, the presidential administration is now seeking appropriate changes in the country’s legal system or considering acceptance of foreign practices. This comes after the approval of spot Bitcoin ETFs in the United States.
Hot Take: South Korea’s Crypto Regulation Evolves
South Korea continues to make significant strides in regulating its crypto industry. The proposed requirement for regulatory approval of crypto executives reflects a commitment to ensuring accountability and responsible practices within the sector. Additionally, the push for spot Bitcoin ETFs demonstrates a willingness to explore new possibilities and align with international trends. As South Korea strengthens its oversight and adapts its legal framework, it aims to create a safer and more transparent environment for crypto market participants.
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