South Korean Regulator to Establish Standards for Issuance and Distribution of Crypto

The South Korean Financial Supervisory Service (FSS) plans to establish guidelines for the issuance and distribution of cryptocurrencies to strengthen the Virtual Asset Users Protection Act. The new legislation requires authorities to develop standards for virtual asset listing procedures, internal controls, and issuance and distribution volumes. These standards, expected to be released in January, will be created in collaboration with research services commissioned by the National Assembly. The objective is to establish a clear regulatory framework and enhance supervision and inspection within the virtual asset market. However, the current Virtual Asset User Protection Act lacks comprehensive regulatory measures, so the National Assembly has requested additional rules and regulations from the Financial Services Commission and the FSS. These forthcoming regulations, set to take effect in July of the following year, will address conflicts of interest, stablecoin discipline, and virtual asset valuation, advisory, and public disclosure businesses. The outline for this virtual asset regulatory system, including standards for issuance and distribution volumes, will be unveiled in January based on research findings and input from industry experts. The FSS aims to collaborate with the industry to create guidelines for listing virtual assets and preventing unfair trading practices, ensuring the stable and secure operation of the virtual asset market. The Head of the FSS, Lee Bok-hyeon, emphasized the regulator's commitment to responsible innovation within the financial industry and the establishment of a sound virtual asset market.