South Korean Regulator to Establish Standards for Issuance and Distribution of Crypto
South Korea’s Financial Supervisory Service (FSS) is looking to establish comprehensive guidelines for the issuance and distribution of cryptocurrencies to enhance the Virtual Asset Users Protection Act passed earlier this year.
Under this new legislation, authorities are mandated to formulate standards concerning virtual asset listing procedures, internal controls, and issuance and distribution volumes.
The forthcoming standards, scheduled for release in January of the following year, will be developed in collaboration with research services commissioned by the National Assembly.
The objectives are to create a clear regulatory framework and to bolster supervision and inspection within the virtual asset market, local media outlets reported.
The Virtual Asset User Protection Act focuses on safeguarding customer deposits held by virtual asset operators and cracking down on unfair trading practices.
However, it lacks the comprehensive regulatory measures needed to address the complexities of the rapidly evolving cryptocurrency industry.
To bridge these regulatory gaps, the National Assembly has called on the Financial Services Commission and the Financial Supervisory Service to devise additional rules and regulations, including legislation.
These forthcoming regulations, slated for implementation when the law takes effect on July 19th of the following year, will tackle key issues such as conflicts of interest in the virtual asset issuance and distribution process, the establishment of a stablecoin discipline system, and the regulation of virtual asset valuation, advisory, and public disclosure businesses.
The outline for this new virtual asset regulatory system, which encompasses standards for issuance and distribution volumes,
Read more on cryptonews.com
