South Korea inches closer to comprehensive crypto regulations

The South Korean parliament begins a discussion on robust and comprehensive crypto regulations. The focus is on investor protection and the issuance and disclosure of assets.

South Korea is taking more steps to regulate the crypto market, with local media reporting that the country’s parliament has held a robust discussion on the Digital Asset Act. The focus of the discussion was investor protection, a point that the country’s legislators have pondered over for a long time. Another important talking point was the issuance and disclosure of virtual assets.

The report notes that the cryptocurrency market in South Korea has surpassed 55 trillion won (~$42 billion) in the second half of 2021. Data estimates that around 15 million users use crypto in total.

As such, the authorities believe that investor protection and disclosure measures are necessary. The recent discussion is a big step towards that, and events like the fall of the UST stablecoin have only made this much more of a priority.

South Korea’s National Assembly Executive Committee has legislation related to cryptocurrencies under consideration. This includes a total of 18 Bills, including 11 Virtual Assets Acts, four amendments to the Electronic Financial Transactions Act, two amendments to certain Financial Information Acts and an amendment to the Financial Services Commission.

In April, officials will ask experts for their opinion and hold public hearings. The legislation will then be able to proceed after being held up in the early phase.

Crypto regulation is expected this year

It has long been known that South Korea focuses heavily on regulating the cryptocurrency market. The country houses many cryptocurrency investors. The authorities appear to be on the verge of implementing a comprehensive set of regulations.

Recently, lawmakers issued guidelines for security token offerings, which was a positive step forward for businesses. Meanwhile, the Financial Services Commission said it would monitor crypto whales. Besides, officials are also working on creating a law on Metaverse Industry Promotion.

South Korea is making progress with crypto controls

South Korea’s regulatory spotlight has focused on both promoting certain aspects of the market and imposing controls on others. Web3 and the metaverse are major target areas. The country has invested 1.6 million dollars in a metaverse fund.

In order to continue operations, crypto exchanges in the country have renewed their banking agreements. Local media reports that illegal exchanges continue to be a problem, with traders using them for over $4.3 billion in trades.