Prior to the more comprehensive “Digital Asset Basic Act,” which is presently being developed, South Korean financial regulators and legislators hope to approve an initial measure that focuses on safeguarding investors in digital assets and combating unfair trading practices.
According to the local news outlet Dong-a Ilbo, the Financial Services Commission (FSC) has decided to prioritize legislation that is crucial to protecting cryptocurrency investors so that it can go into effect as early as next year. This is because creating a more comprehensive regulatory framework may take longer.
The law will enable South Korean authorities to increase their monitoring of the cryptocurrency market to the same level as the stock market, according to Dong-a, even though specifics of the planned legislation have not yet been made public.
The National Assembly of South Korea is now considering 14 proposals that touch on various facets of the cryptocurrency industry, including token listing and industry development.
As most existing regulations on cryptocurrency are focused on anti-money laundering, South Korea has been creating a comprehensive legislation for the country’s cryptocurrency industry called the “Digital Asset Basic Act.”
Local MPs have urged for accelerated legislation on crypto laws in order to improve safety measures for investors following the collapse of the South Korean-born cryptocurrency Terra-LUNA in May.
In a policy meeting last month, an FSC official stated that it would be challenging for South Korea to develop its own regulatory system before a single worldwide regulatory framework, as cross-border enforcement would be a significant factor in efficacy.
According to the FSC, South Korea has 6.9 million cryptocurrency users with an average daily trading volume of US$3.7 billion.
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