South Korean Regulator to Establish Standards for Issuance and Distribution of Crypto South Korea’s Financial Supervisory Service
(FSS) is looking to establish comprehensive guidelines for the issuance and distribution of cryptocurrencies to enhance the Virtual Asset Users Protection Act passed
earlier this year.
Under this new legislation,
authorities are mandated to formulate standards concerning virtual asset listing procedures, internal controls, and issuance
and distribution volumes. The forthcoming standards, scheduled for release in January of the following year,
will be developed in collaboration with research services commissioned by the National Assembly.
The objectives are
to create a clear regulatory framework and to bolster supervision and inspection within the virtual asset market, local media outlets reported.
The Virtual Asset User Protection Act focuses on safeguarding customer deposits held by virtual asset operators and cracking down on unfair trading practices. However, it lacks
the comprehensive regulatory measures needed to address the complexities of the rapidly evolving cryptocurrency industry.
