South Korea Gears Up for Implementation of New Cryptocurrency Regulation

South Korea is making preparations to implement a new law that could have significant implications for the cryptocurrency industry in the country. The Financial Services Commission (FSC) is working on a bill that will introduce stricter regulations for major shareholders and reform the governance structures of virtual asset exchanges. The announcement was made by FSC Chairman Kim Byung-hwan during a state audit conducted by the National Assembly’s Political Affairs Committee. Currently, there is no legal framework to investigate large shareholders in virtual asset exchanges, and the proposed law aims to address this gap. The issue of unregulated major shareholders was highlighted by a lawmaker who emphasized the lack of supervision in the cryptocurrency sector compared to traditional financial institutions. The lawmaker called on the FSC to take prompt action to identify major shareholders, evaluate their ethical standing, and ensure their social credibility. The proposed law is expected to bring more transparency and accountability to the cryptocurrency industry in South Korea.