South Korea To Set Virtual Asset Standards; Announcement January 2024

South Korea's financial regulatory authority announced that it will soon formulate standards based on the supplementary opinions of the Virtual Asset User Protection Act, enacted earlier in June 2023.

The standards will be for virtual asset listing processes, internal management, issuance, and circulation volumes. The outline is slated for a tentative January 2024 announcement, according to CoinGape.

Before that, it will review the conflicts of interest in the issuance and distribution process for establishing a re­gulatory system for stablecoins and virtual asset e­valuation.

Also Read: Is South Korea A Crypto Nation? Citizens Declare Over $98B In Foreign Digital Assets

The report’s deadline is set before July 19, 2024, which is aligned with the enforcement date of the law. The FSS also seeks to collaborate with industry partners to form guidelines for virtual asset listing and inquire into unfair trading practices.

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The Act

The Financial Supervisory Service (FSS) has presented a business report to the National Assembly Political Affairs Committee for creating a virtual asset market supervision and inspection system.

The Act consists of regulations on customer deposit custody rules and unfair trade practices for virtual asset service providers. However, while it includes complex rules for protecting investor interests it misses out on basic compliance that is required by the virtual asset industry, according to CoinGape.

On the National Assembly’s request, the Financial Services Commission (FSC) and FSS will review and report on additional necessary virtual asset regulatory systems.

Now Read: OTC Crypto Market Alarms South Korean Regulators: $4B In Illicit Trades Unearthed

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