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Financial regulator for South Korea reiterates support for blockchain and cryptocurrency security

The Financial Services Commission (FSC), South Korea’s primary financial regulator, is led by Kim Joo-hyun, who announced on Thursday that his organization will support blockchain technology and customer protections in the cryptocurrency industry.

In his opening remarks at the National Assembly parliamentary audit on the FSC on Thursday, Kim stated, “In cooperation with the National Assembly, we will actively support the establishment of a regulatory system for virtual assets that balances innovation through new technologies such as blockchain, consumer protection and financial stability,”

In keeping with the age of digital change, Kim also emphasized the FSC’s planned reform of financial regulation, which would involve reexamining the present prohibition on financial institutions like banks from directly entering the cryptocurrency market.

The FSC will use the current cryptocurrency regulations to monitor virtual asset service providers (VASP), and the organization will collaborate with other departments including investigative agencies to provide a safer environment for crypto consumers, according to Kim.

With an emphasis on holding better standards for crypto token issuers and developers, South Korea is planning new legislation on cryptocurrencies, tentatively titled the Digital Asset Basic Act, which is due next year.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.