The head of South Korea’s Financial Services Commission (FSC) said that the body intends to speed up its evaluation of 13 digital asset-related laws that are up for debate in the National Assembly of the nation.
South Korean news site Edaily reported on Thursday that Financial Services Commission (FSC) chair Kim Joo-hyun stated that a task team made up of government departments and commercial specialists will “soon” evaluate draft legislation on cryptocurrency.
Kim further stated that the financial watchdog would “create institutional amendments that will adopt a balanced approach to blockchain development, investor protection, and market stability.” Kim was speaking before the Digital Assets Committee.
Even before legislation is passed, Kim promised that the industry would begin self-regulation activities in an effort to safeguard investors. “International efforts are being made to stabilize the educational system and lower the potential for consumer protection without stifling technical advancement.”
The head of the financial watchdog made the remarks in response to news that South Korea intended to adopt the Digital Asset Basic Act, a comprehensive framework on cryptocurrency, by 2024.
Many reports suggested that South Korean authorities had stepped up investigations and enforcement efforts in the wake of the crash of Terra (LUNA), now known as Terra Classic (LUNC), including a plan to establish the Digital Assets Committee with a goal of providing investor protection and listing standards. In July, seven cryptocurrency exchanges reportedly came under raid by South Korean prosecutors.
In spite of a market dip and the controversy surrounding the collapse of Terra, South Korea has moved toward becoming a more crypto-friendly regulatory climate under President Yoon Suk-yeol, who took office in May. Do Kwon, the Terraform Labs co-founder, has apparently come under legal scrutiny and received requests to appear at a parliamentary hearing on the subject.
