With rising complaints and issues cropping up regarding crypto in the country, a South Korean regulator has framed new rules for its digital asset law.
South Korea already has a digital asset law called the Virtual Asset Users Protection Act. After careful deliberations, the Financial Supervisory Service (FSS) in the country will create new rules for it. The fresh crypto regulations will supplement the already existing law.
Lee Bok-hyun, the head of the South Korean regulator, spoke recently on the development. The regulator had faced an audit recently, and he was responding to the criticism around it. The new rule will have new centers of focus for the law. It includes internal controls, virtual asset distribution, and listing procedures. Reports in South Korea have carried extensive coverage of the development.
Digital Asset eXchange Association (DAXA), a grouping of local exchanges, will also discuss the regulations with the FSS. Moreover, Lee was of the opinion that the earlier law of South Korea did not have details of regulation. With crypto regulation gaining momentum across the globe, South Korea has also taken cognizance of it.
“There are related systems in place in the securities sector for various screenings related to the issuance market, but there are no related systems in place at DAXA or individual exchanges,” said Lee. In his opinion, the law did not give enough powers to the South Korean regulator. They would also consult DAXA for matters concerning distribution and staking.
Foreign crypto tokens are informally called ‘Burger Coin’ in South Korea. The head of the regulator spoke of the term while interacting with the media. He referred to the price drop of such coins in domestic exchanges of the country and its prevention. The ensuing crypto regulation would focus on the same to prevent such instances in the future.