The Financial Services Commission of South Korea (FSC) plans to speed up the drafting of digital asset legislation. At the same time, the Financial Supervisory Service (FSS) is conducting audits of market participants.
FSC Chairman Kim Joo-hyun said the regulator intends to speed up the adoption of 13 separate bills that are part of the Korean Digital Asset Basic Act. This was reported by the local media.
Recall that in May this year, South Korea’s new government began preparing a legal framework for regulating the cryptocurrency market. The bill was planned to take effect in 2024.
The Digital Assets Committee, a working group made up of private experts and government ministries, has already prepared a series of strategies to self-regulate the industry to protect investors before the main law takes effect.
The FSC acts as a financial supervisor within the development of the Digital Asset Basic Act. According to Kim Joo-hyun, the agency wants to fast-track the adoption of the legislative framework by the National Assembly of the Republic of Korea and also prepares a series of amendments to protect investors and ensure the crypto market’s stability.
Lee Bok-hyun, head of South Korea’s Financial Supervisory Service (FSS), said the regulator has begun inspecting some market participants to prevent the use of virtual assets for money laundering. For example, the Seoul Southern District Prosecutors’ Office searched the offices of 15 cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax in late July. The reason for the actions was the Terra crash and the investigation of Terraform Labs (TFL) and its founder Do Kwon.
