South Korean Financial Authorities Set To Begin Second Phase Of Virtual Asset Legislation Research
- Financial authorities are commencing research services for the second phase of virtual asset legislation, following the recent passage of the “Act on the Protection of Users of Virtual Assets.”
- The Financial Services Commission (FSC) held a task force meeting to outline the second-stage legislation, which will establish virtual assets as an institutional system.
- The FSC plans to order research services promptly, aligning with the National Assembly’s request to address conflicts of interest and enhance the regulatory framework for the virtual asset industry.
Financial authorities are gearing up to conduct research services for the second stage of virtual asset legislation, with plans to start as early as this month.
The recently passed “Act on the Protection of Users of Virtual Assets” primarily focuses on user protection and regulation of unfair trade practices, prompting the need for supplementary regulations related to market order and virtual asset issuance and financing.
The Financial Services Commission (FSC) held a digital asset private joint task force (TF) working group meeting, outlining the second-stage legislation that will establish virtual assets as an institutional system. Discussions were held regarding the key components to be included in the upcoming legislation.
The first bill, known as the Virtual Asset User Protection Act, has already been passed by the National Assembly. It covers areas such as safeguarding user assets, regulating unfair practices in the virtual asset market, and granting financial authorities the power to oversee and penalize market participants.
In response to the National Assembly’s call for research services for the second-stage legislation, the FSC is taking steps to ensure the smooth integration of the virtual asset industry into the institutional framework. This includes addressing conflicts of interest that may arise during the issuance and distribution of virtual assets.
The Financial Services Commission aims to order research services for the second phase of virtual asset legislation either by this month or the next. By initiating this research, they are actively working towards the development of comprehensive regulations that will govern the virtual asset market and promote its long-term stability.
As the digital asset landscape continues to evolve, these research efforts will play a crucial role in shaping the regulatory framework and ensuring a secure and transparent environment for virtual asset users and businesses alike.
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