Vice Chair Kim So-young "Additional Review of Virtual Asset Issuance and Distribution Regulations"

Korea-IMF 'Digital Currency' Conference Held

[Image source=Yonhap News]

Kim So-young, Vice Chairman of the Financial Services Commission, announced on the 14th that additional market regulatory frameworks will be reviewed regarding the issuance (public offering·ICO) and distribution of virtual assets.

Vice Chairman Kim made these remarks at an international conference held at the Four Seasons Hotel in Jongno-gu, Seoul, themed "The Future of Digital Currency and Central Bank Digital Currency (CBDC) Promotion Strategy."

He explained, "The 'Act on the Protection of Virtual Asset Users, etc.,' which clarifies the obligations of virtual asset service providers and prohibits unfair trading practices at a level similar to the capital market, is scheduled to be implemented from July next year. Discussions on institutional improvements for applying existing capital market law regulations to token securities are underway in the National Assembly."

He added, "Since the major framework of the regulatory system has been established, we will further review the issuance and distribution of virtual assets, as well as the business conduct of virtual asset service providers and market regulations."

Furthermore, he stated, "We will also prepare a separate regulatory framework for stablecoins (virtual currencies linked to the value of fiat currencies), which could threaten existing monetary sovereignty and financial markets, to enhance the reliability and stability of the digital asset market."

This conference was jointly hosted by the Ministry of Economy and Finance, the Financial Services Commission, the Bank of Korea, and the International Monetary Fund (IMF), with attendees including IMF Managing Director Kristalina Georgieva, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, and Bank of Korea Governor Lee Chang-yong.