To address the rapid growth of the cryptocurrency market, South Korea establishes Virtual Asset Regulatory and Investigative Authorities.
The Financial Supervisory Service (FSS) of South Korea announced the establishment of a Virtual Asset Management Bureau and Investigation Bureau aimed at strengthening regulation of the virtual asset market, establishing market order in advance, and responding to the rapid growth trend.
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South Korea Establishes Virtual Asset Regulatory Agency and Investigation Bureau
According to South Korean media outlet News1, the Financial Services Commission (FSC) previously only operated a digital asset research group, mainly responsible for virtual asset regulations, market research, and monitoring work. Therefore, this organizational adjustment will make the FSC's role in the virtual asset market more significant.
The establishment of the Virtual Asset Regulatory Agency and Investigation Bureau aims to strengthen regulation of the virtual asset market, establish market order in advance, and address the rapidly growing trends.
South Korea's Cryptocurrency Regulatory Framework
Virtual Asset Regulatory Agency: The director of the agency, Lee Hyun-deok, currently the director of the 2nd Financial Investment Supervisory Division, will be responsible for overall virtual asset affairs, including regulation of virtual asset operators, market monitoring, and regulatory improvements.
Virtual Asset Investigation Bureau: The director of the bureau, Moon Jung-ho, currently the director of the 1st Accounting Supervisory Division, will focus on investigating unfair trading incidents, combating market disruption activities, with an emphasis on market stability and investor protection.
The report states that the establishment of the Virtual Asset Regulatory Agency and Investigation Bureau is primarily aimed at establishing market order before the implementation of the Virtual Asset Consumer Protection Act in July next year.
Compared to this, Taiwan only has anti-money laundering regulations and VASP guidance for virtual currencies. Taiwan's regulatory policies in the cryptocurrency field seem to lag behind in Asia.
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