South Korean financial authorities are preparing the second phase of the crypto asset law to regulate various aspects of the country’s cryptocurrency market, local media ChosunBiz reports. report June 5th.
The second phase of the law will focus on regulating issues such as the issuance of virtual assets, addressing conflicts of interest that may arise during issuance, and establishing a regulatory framework for stablecoins.
The South Korean National Assembly has ordered the FSC to submit a report on the issuance of cryptocurrencies.
Following the passage of the Virtual Asset User Protection Act, South Korean lawmakers addressed the country’s Financial Services Commission (FSC) on the issue of virtual currency issuance and “conflicts of interest arising in the process of issuance and distribution by virtual asset operators”. ordered to submit a report addressing the these assets.
To this end, the FSA will initiate a research process focused on resolving these conflicts of interest, regulating stablecoins, valuing virtual assets, advisory services, and establishing standards for issuance.
FSC Considers Expanding Virtual Asset User Protection Law
In addition, the FSC is also considering expanding the crypto user protection law through a government decree, following the issue of fighting local crypto investment platforms Delio and Haru.
Hull Investments suspended user withdrawals on June 13 due to false information provided by an anonymous broker. Another investment platform Derio suspended withdrawals on June 14, citing its exposure to Hull.
In the wake of the incident, South Korean prosecutors have banned the executives from traveling abroad.
At its July 3 meeting, the FSC reportedly cited the withdrawal issue of Helio and Dal, citing the virtual asset management firm as operating in a gray regulatory area. He said he would consider developing a virtual asset user protection law for the company.
An unnamed official with the FSC said the regulator has held discussions with other financial institutions and ministries about the move.
Stablecoin regulation first appeared on CryptoSlate as South Korea prepares further crypto legislation focused on asset issuance.