South Korea is taking a proactive stance on crypto regulation, as the Financial Supervisory Service (FSS) announced its plans to release detailed guidelines for virtual assets. The guidelines will cover aspects such as issuance, circulation, and listing standards, aiming to provide clarity and stability for the growing crypto market.
The FSS move aligns with the global trend of crypto regulation, reflecting South Korea’s dedication to promoting transparency and preventing illegal activities in the crypto space.
The FSS revealed its intention to introduce comprehensive guidelines for virtual assets on Jan 8, 2024. According to the report, Ahn Byeong-nam, head of the Digital Asset Research Team at the FSS, stated during a policy discussion that the guidelines will address issuance volume, circulation, and listing standards. Byeong-nam also stressed the importance of working with exchanges to develop nuanced guidelines that suit the diverse nature of crypto markets.
The announcement comes after the mid-October disclosure that South Korea’s financial regulatory authorities were working on new regulations for the virtual asset market, covering listing procedures, internal controls, and issuance and circulation volume.
South Korea Takes Measures To Regulate Crypto
The FSS latest initiative is part of a broader trend in South Korea’s changing crypto landscape. The Financial Services Commission (FSC) recently amended the Credit Finance Act to limit credit card use in crypto transactions, aiming to curb potential fund abuse and speculation.
Notably, the main focus of this initiative is to stop citizens from buying cryptocurrencies on foreign exchanges, citing concerns over illegal fund outflow, money laundering, and speculative behavior.
In another development, South Korea’s National Tax Service clarified its position on virtual assets, offering relief to decentralized wallet holders. The announcement confirms that individuals using non-custodial, decentralized wallets will not be subject to overseas financial account reporting, providing clarity amid concerns about reporting requirements.
Additionally, to improve accountability and transparency, the South Korean government has required nearly 6,000 officials to disclose their cryptocurrency holdings starting Jan 1, 2024. Also, this initiative marks a significant step in the nation’s approach to managing virtual assets, reinforcing the commitment to responsible crypto management.
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