South Korea’s financial regulatory agency, the Financial Services Commission (FSC), has revealed plans to re-examine its current ban on crypto exchange-traded funds (ETF), indicating that a shift from the regulator’s previous stringent stance on incorporating crypto assets to the traditional financial market. The agency also founded a Virtual Asset Protection Foundation to handle terminated crypto asset operations accurately.
South Korea to Re-endorse Crypto
A local news outlet revealed the FSC’s Thursday announcement that it will set up a new Virtual Asset Committee to examine the country’s virtual asset market and provide and enforce policies on market operators.
The committee will closely cross-check the issues concerning spot crypto ETF approval in the country and also work to allow virtual asset trading accounts within South Korea just as in the United States.
Working towards virtual asset adoption, the FSC is also reviewing operation renewal applications from different crypto asset firms and business operators. Thus, crypto companies that submitted complete applications since 2021 can file for a renewal before the end of the year.
The financial watchdog is working to amend the country’s Specific Financial Information Act (SFIA), giving more attention to the reporting system and ensuring that a stable and effective system for checking unfair trading services and monitoring abnormal transactions is enacted.
Moreover, the FSC has organized the Virtual Asset Protection Foundation. This non-profit establishment will work closely with the Digital Asset Exchange Association (DAXA) and other agencies to manage and return user assets when centralized exchanges or other crypto firms seize operations.
“We will review regulations on business operations and entry, and regulations on issuance, disclosure, and listing through the establishment of a statutory association,” the agency stated.
South Korea’s Crypto Stance
Since 2018, the South Korean FSC has banned investors from creating crypto trading accounts on exchanges and has remained firm even after the approval of different spot crypto ETFs across other countries.
South Korea’s Personal Information Protection Commission (PIPC) recently fined decentralized open-source crypto firm Worldcoin Foundation about $830,000 for not adhering to the country’s data protection laws.
