New South Korean Crypto Regulator ‘Days Away from Launch’, Government Confirms
The South Korean government is set to make good on a promise to launch a new regulatory agency that will govern the domestic crypto sector in the wake of what it calls “Terra (LUNAC) incident.”
As reported at the end of May, the body has so far been named Selection for digital assets (literal English translation), and creation has become faster.
The committee will have contact with Financial Services Committee (FSC) and Financial Supervisory Service (FSS), South Korea’s main financial regulators. Currently is Financial Intelligence Unit (FIU), a branch of the FSC, regulates crypto exchanges. It is not clear whether the new committee will eventually take over this role, but its first tasks will almost certainly be policy-making.
The Chosun Ilbo reported that the committee was on track to start “before the end of the month”, revealing that many of its founding members had already been appointed.
These reportedly include Ju Hyun-cheol, a lawyer who previously worked on crypto policy for the offices of President Yoon Seok-youl. Kim Gap-rae, senior researcher at the committee, will reportedly also sit on the committee The Capital Markets Research Instituteas well as Park Seon-yeong, professor of economics at Seoul’s Dongguk University.
Yoon made a series of crypto-related promises both in the run-up to his election earlier this year and shortly after winning power. And the committee will be tasked with turning these promises into legislation. At the center of these promises was a commitment to create the country’s first dedicated crypto-related law. Yoon also promised to promote growth in the crypto sector – while ensuring tighter levels of investor protection.
Despite earlier claims that the new committee would act independently of the FSC and FSS, it appears that, at least initially, this will not be the case.
The FSC will oversee the formation of the Digital Assets Committee, and the latter will report to the FSC – much like the FIU currently does.
But in the long term, Seoul sees the new regulator turning itself off.
An unnamed government source close to the matter was quoted as saying that “as the crypto-asset market grows,” it was likely that the body will move out of FSC oversight and become a body that reports directly to the president’s offices.
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Learn more:
– South Korea Launches Crypto Regulatory Agency in Wake of LUNA Crash
– South Korean crypto exchanges form Joint Response Council to avoid repeat of LUNA ‘incident’
– Prosecutors “Still Investigating Existing South Korean Terraform Subsidiary”, Exchanges Make Self-Regulation Proposal
– South Korean regulators close the net on opportunistic Kimchi Premium traders
– South Korean MP wants to launch a fund to help struggling crypto investors
– South Korean bankruptcy court warns of upcoming increase in crypto-related cases
