Financial Services Commission Chairman: "Digital Asset TF Formed... Basic Act Under Review"

Financial Supervisory Service Expands Risk Council

[Image source=Yonhap News]

[Asia Economy reporters Lee Jung-yoon and Kwon Hyun-ji] Kim Joo-hyun, Chairman of the Financial Services Commission, announced on the 11th that a provisional Digital Asset Task Force (TF) involving government ministries and the public-private sector has been formed to review the Digital Asset Basic Act.

At a meeting held that day at the National Assembly hosted by the People Power Party’s Digital Asset Special Committee, Chairman Kim stated this and explained, "Currently, 13 bills have been submitted to the National Assembly to promote the sound development of the virtual asset market and protect investors. The government will actively participate in these discussions to innovate the new technology of blockchain and seek ways to balance consumer protection and financial stability."

Chairman Kim also said, "Even before legislation, we will do our best to induce the industry’s self-regulation efforts and protect investors through inspections and supervision of virtual asset operators. To prevent money laundering using virtual assets, inspections by the Financial Intelligence Unit (FIU) on virtual asset operators will be conducted, and we will continue cooperation with the Ministry of Science and ICT and others to advance blockchain technology."

The Financial Supervisory Service (FSS) also plans to provide support until regulations are established. Lee Bok-hyun, Governor of the FSS, said, "International consensus on various issues in the digital asset market is still ongoing. Until public regulations are established in the future, the FSS will spare no effort in providing advisory services and support so that the self-regulation of cryptocurrency exchanges can serve as an excellent stepping stone."

Additionally, Governor Lee added, "The FSS is currently forming a Virtual Asset Risk Council to proactively inspect various risk factors. Academia and the four major won-based exchanges are participating, and we plan to expand participation to market players such as coin market exchanges and financial companies."

On the same day, the People Power Party upgraded the 'Virtual Asset Special Committee' to the 'Digital Asset Special Committee' and held an inauguration ceremony. At this event, the party emphasized the necessity of regulations such as investor protection.

Yoon Chang-hyun, Chairman of the Digital Asset Special Committee, said, "The United States and Europe are also struggling with virtual assets. We must do our best to prepare various measures and align our efforts with global trends."

He added, "I realized how harmful it is to create flawed laws after coming to the National Assembly. We will do our best to create good laws to protect investors and promote the industry."

People Power Party lawmaker Yoon Han-hong said, "Watching the Terra and Luna incidents, it seems that the public’s greatest concern is the urgent need to establish investor protection measures. There are many known illegal activities such as abnormal overseas remittances and hacking, so a management and supervision system must be established as soon as possible to protect the public."

Seong Il-jong, Policy Committee Chairman of the People Power Party, also said, "Blockchain technology is one of the valuable technologies that will open new trends in finance or distribution fields in the future. The Policy Committee believes that this technology should be developed as a leading technology that brightens the future of the Republic of Korea."