The South Korea Financial Supervisory Service (FSS) plans to establish comprehensive guidelines for the issuance and distribution of cryptocurrencies to strengthen the Virtual Asset Users Protection Act. These guidelines, set to be released in January next year, will be developed with the help of research services commissioned by the National Assembly.
The objective is to create a clear regulatory framework and enhance supervision and inspection in the virtual asset market. However, the current legislation lacks the necessary regulatory measures to address the complexities of the cryptocurrency industry. To bridge this gap, the Financial Services Commission and the FSS have been called upon to devise additional rules and regulations, including legislation.
These forthcoming regulations, to be implemented when the law takes effect in July of the following year, will address key issues such as conflicts of interest in the asset issuance and distribution process, stablecoin discipline, and the regulation of virtual asset valuation and advisory businesses. The outline for this new virtual asset regulatory system, including standards for issuance and distribution volumes, will be unveiled in January when the research findings are published.
These findings will use international precedents and input from industry experts and stakeholders to develop effective regulatory solutions. The FSS aims to work closely with the industry to create guidelines for listing virtual assets and preventing unfair trading practices, in order to facilitate the implementation of the Virtual Asset User Protection Act and ensure the stable and secure operation of the virtual asset market. Lee Bok-hyeon, Head of the FSS, emphasized the regulator’s dedication to promoting responsible innovation in the financial industry and creating a solid foundation for the virtual asset market.