South Korea's Financial Services Commission (FSC) has announced its commitment to support the second phase of crypto legislation, aiming to create a fair and transparent environment in the virtual asset industry. According to a recent report by Digital Today, FSC officials are focusing on regulating business activities and implementing real-name accounts for corporations and institutions as the digital asset industry converges with traditional finance.
South Korea Targets Global Regulation Standards
The new legislation is designed to address challenges related to security tokens and central bank digital currencies (CBDCs) while ensuring compatibility with global standards and safeguarding investor interests. The move to advance the second phase of crypto legislation comes in response to the growing need for updated regulatory frameworks to accommodate the evolving digital asset landscape.
Key considerations include amendments to the Capital Market Act to provide clearer guidelines on digital assets and the issuance of real-name accounts for corporate entities and institutional players. This strategic decision is expected to enhance transparency, accountability, and legal certainty for companies entering the virtual asset market, currently dominated by individual investors.
The FSC's regulatory framework will also encompass operational and qualification requirements for virtual asset service providers, imposing stricter measures for anti-money laundering (AML) and know-your-customer (KYC) procedures. By enhancing regulatory standards, authorities aim to cultivate a safer investment environment while deterring illicit activities within the digital asset ecosystem.
$107 Million Seized During Last Year
In a significant development, South Korea's Joint Virtual Asset Investigation Team has successfully confiscated $107 million in assets from individuals implicated in crypto-related fraud activities over the past year. Operated out of the Seoul Southern District Prosecutors' Office, the team has brought charges against 41 suspects and apprehended 18 individuals involved in fraudulent schemes.
Collaborating with key entities such as the Financial Supervisory Service, the Korea Exchange, and the National Tax Service, the investigation team has overseen high-profile cases involving the seizure of luxury assets, including supercars and properties in upscale areas like Gangnam. These efforts underscore South Korea's commitment to combating financial crimes in the digital asset space and upholding the integrity of its financial system.
