South Korean financial authorities and legislators are looking to pass an initial bill that focuses on protecting digital asset investors and preventing unfair trade acts, ahead of the more comprehensive “Digital Asset Basic Act” currently under development, according to local media reports.
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- The Financial Services Commission (FSC) has decided to prioritize legislation that is essential to safeguarding crypto investors to take effect as early as next year, as setting up a more wide-ranging regulatory framework could take more time, local news outlet Dong-a Ilbo reported.
- While specific details on the upcoming legislation have not yet been announced, Dong-a reports that the legislation will help South Korean authorities heighten their oversight of the crypto market to the same level as the stock market.
- There are currently 14 proposals pending before South Korea’s legislature, the National Assembly, that touch on different aspects of the crypto sector, such as industry promotion and token listing.
- South Korea has been developing an overall regulation for the local crypto sector named the “Digital Asset Basic Act,” as existing regulations on crypto are centered around anti-money laundering.
- After the South Korea-born crypto project Terra-LUNA collapsed in May, local lawmakers have called for faster legislation on crypto regulations to create better safety measures for investors.
- One FSC representative said in a policy discussion last month that it is difficult for South Korea to create its own regulatory system ahead of a common global regulatory framework, as cross-border enforcement would be a key determinant of effectiveness.
- South Korea has about 6.9 million crypto users with an average daily trading volume of US$3.7 billion, according to the FSC.
See related article: South Korea unlikely to push out crypto regulation before the U.S., authority says