Kim So-young Meets US SEC Commissioner: "Korea to Promote Blockchain Technology Development and Virtual Asset Regulation in Balance"

Meeting with US SEC Standing Commissioner on the 2nd

Kim So-young, Vice Chairman of the Financial Services Commission, met with Mark Uyeda, Commissioner of the U.S. Securities and Exchange Commission (SEC), on the 2nd to explain the status of domestic blockchain technology development and virtual asset regulations. The photo shows Kim So-young, Vice Chairman of the Financial Services Commission (left). Photo by Jo Yong-jun jun21@

Kim So-young, Vice Chairman of the Financial Services Commission, met with Mark Uyeda, Commissioner of the U.S. Securities and Exchange Commission (SEC), on the 2nd and explained that the South Korean government's blockchain technology development and virtual asset regulatory policies are being pursued in a balanced manner through the dual management of relevant ministries. She also expressed the intention to engage in policy communication with the U.S. government regarding the rapidly growing global blockchain and artificial intelligence (AI) industries.

The Financial Services Commission announced that Vice Chairman Kim So-young met with U.S. SEC Commissioner Mark Uyeda at the Government Seoul Office in the morning of the same day and explained the current domestic policy status.

Commissioner Uyeda said, "We are closely monitoring virtual asset regulatory trends in major countries including South Korea," and inquired about the efforts South Korea is making to achieve a balance between technological innovation using new technologies such as blockchain, user protection, and financial stability.

Vice Chairman Kim So-young explained the South Korean government's efforts to promote policies through inter-ministerial cooperation. She said, "Blockchain technological innovation and industry development are being led mainly by the Ministry of Science and ICT, while the Financial Services Commission prioritizes user protection and market order maintenance, having enacted the 'Virtual Asset User Protection Act,' which has been in effect since July 19 of this year."

Vice Chairman Kim also responded, "In line with the demand for a new financial market order arising from recent technological innovations such as blockchain and AI, I hope that both countries will actively communicate to secure market trust."

Meanwhile, both sides exchanged opinions on the potential impact on the capital market of the proposed prudential regulations for non-bank financial institutions (NBFI) currently under discussion at the Financial Stability Board (FSB), a capital market regulatory and supervisory organization. NBFIs refer to non-bank financial institutions involved in credit intermediation activities outside the banking system, such as securities firms, insurance companies, and savings banks. There have been concerns in the market that the increased leverage resulting from the expanded credit supply through NBFIs, which has grown to a level comparable to banks, could exacerbate market shocks.