South Korea’s regulator outlines steps to reform digital property law.

South Korea's Financial Supervisory Service (FSS) is preparing regulations to supplement the earlier 2023 Virtual Asset Consumer Protection Act, according to local reports. New regulations should be ready by January before the law comes into force, said the head of the FSS.

The Political Affairs Committee of South Korea's National Assembly held an audit on the FSS on October 17, during which FSS chief Lee Bok-hyeon responded to criticism that South Koreans were losing money on crypto “burger coins,” Korean slang for foreign-issued cryptocurrencies. . Sold in South Korea.

South Korea's Financial Supervisory Service Governor Lee Bok-hyun made an unannounced two-day visit to China last week, the first in six years by the head of the FSS.https://t.co/tK360ZYnOD

— The Korea Herald (@TheKoreaHerald) September 7, 2023

According to South Korea's audit coverage, the FSS will establish standards for operating procedures, internal control, and the issuance and distribution of virtual assets, as well as a “virtual asset market supervision and control system.” Lee is discussing the upcoming regulations with the Digital Asset eXchange Association (DAXA), which includes local crypto exchanges Upbit, Bithumb, Coinone, Korbit and Gopax.

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Lee said the June law lacked regulatory detail. The law establishes criminal liability for violations, but, Lee said, does not give the agency enough authority. “We will consult with DAXA if there is in fact an act involving fraudulent or unfair disclosure of distribution amounts,” Lee said. He continued:

“In the securities sector, there are related systems in the various filters related to the product market, but there are no related systems in DAXA or the individual exchange.”

South Korean law enforcement has announced plans to establish a joint virtual asset crime investigation unit to jointly investigate crypto crimes. It will have 30 employees drawn from other government agencies, FSS, National Tax Service, Korea Customs Service and others.

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