Juhyun Kim "Virtual Assets and Blockchain Potential Open, Risks Mitigated by Regulation"

Financial Services Commission Holds Digital Finance Policy Officer Plaque Ceremony
Hosts Meeting with Virtual Asset Operators
Attended by Representatives of 5 Major Virtual Asset KRW Exchanges

On the 25th, ahead of the enforcement of the Virtual Asset User Protection Act on the 19th of next month, Financial Services Commission Chairman Kim Joo-hyun stated, "It is important to maintain a balanced approach that keeps the potential of new technologies open while mitigating risks and protecting users through appropriate regulation."

Chairman Kim made these remarks during the afternoon at the Government Seoul Office, where he held a plaque ceremony for the Digital Finance Policy Officer and attended the 'Virtual Asset Operators Meeting,' saying, "The fields of virtual assets and blockchain technology coexist with both potential and risks."

Attendees at the meeting included the Financial Services Commission Secretary-General, the Digital Finance Policy Officer of the Financial Services Commission, the Head of the Digital Finance Division, the Senior Deputy Governor of the Financial Supervisory Service, representatives of the five major virtual asset KRW exchanges, and the Vice Chairman of DAXA.

Chairman Kim emphasized, "The government will strictly respond to unfair trading and other issues to protect investors and maintain financial stability." He also urged virtual asset exchanges to "establish a transparent self-regulatory order such as transaction support standards and thoroughly monitor and report suspicious transactions," adding, "The government will also strive to establish a clear and rational regulatory framework for the virtual asset market in line with global trends."

During the meeting, participants discussed △ the regulatory contents of the Virtual Asset Act and its enforcement decree △ supervisory measures for the successful implementation of the Virtual Asset Act △ and the current status of regulatory compliance preparations by virtual asset operators, including best practices for transaction support.

The meeting also included explanations of the contents of the Virtual Asset Act and its enforcement decree, as well as discussions on cooperation regarding the obligations that virtual asset exchanges must comply with.

The financial authorities plan to pilot test suspicious transaction monitoring systems before the law takes effect to ensure the smooth implementation of the Virtual Asset Act.

Meanwhile, the Financial Services Commission, together with the Financial Supervisory Service, will closely monitor market conditions and thoroughly manage the preparation status related to regulatory compliance by operators to ensure the early stabilization of the Virtual Asset Act. Additionally, they intend to review phased additional institutional improvement measures in consideration of future global regulatory trends.