South Korea to Fast-Track New Crypto Legislations

  • The chairman of the Financial Services Commission noted that a task force of private and government experts will “quickly” review pending crypto legislations.
  • The statement was made during a meeting that marked the inauguration of a special committee on digital assets, announced in June.
A large Republic of Korea flag fluttered at a parade in the streets of Seoul

Republic of Korea’s flag fluttering at a parade, Seoul, Korea, 31 August, 2019. Chintung Lee/Shutterstock

South Korea’s Financial Services Commission (FSC) is planning to fast-track the review of more than a dozen crypto-related bill proposals, local news outlet Edaily reported on 11 August.

According to the publication, the comment was made by the chairman of the FSC, Kim Joo-hyun, during a meeting held at the Parliament complex in Seoul, noting that a task force consisting of private experts and officials from relevant ministries will “quickly” review proposed crypto legislations. He added that there are currently 13 bills for the “virtual asset market and protection of investors” that are pending review in the National Assembly. The chairman of the financial regulator said in a statement:

“Even before legislation, we will induce industry self-regulation efforts and do our best to protect investors. We will continue to make efforts through the consultative body. Efforts are being made internationally to stabilize the education system and reduce the risk of consumer protection without impeding technological development.”

The FSC’s chair also noted that the financial regulator plans to “make institutional supplements that will take a balanced approach to blockchain development, investor protection, and market stability”. Joo-hyun made the announcement during a meeting that marked the inauguration of a special committee on digital assets, which the Korean government said will create shortly after the collapse of the Terra (LUNA) ecosystem.

After Terra’s collapse, governments around the world accelerated their plans to establish rules for digital asset operators and consumers. In June, the South Korean government revealed it was working on a comprehensive legislative framework for crypto, called the Digital Asset Basic Act, which is expected to be established by 2024.

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