South Korea Prepares Regulatory Phase 2
South Korea will launch the second phase of its cryptocurrency regulatory framework in the second half of 2025.
On January 15, the Financial Services Commission (FSC) held its second Virtual Assets Committee meeting to outline the next phase of the Virtual Asset User Protection Act.
Key legislative tasks for South Korea’s next regulatory era
Local media reported on the discussion, which took place at the Seoul government building. Based on the report, the meeting focused on legislative work. Specifically, the Virtual Assets Committee outlined several major tasks for the second phase.
In terms of virtual asset operators, the committee’s top priority is to strengthen the supervision of access and operating activities. This will ensure transparency and protect users from unsound behavior.
The second task involves trading Regulation. The framework will establish a transparent listing and disclosure system to enhance user protection. Discussions included the introduction of a regular disclosure regime similar to that used in capital markets practice.
It also reviews international trends, including Stablecoin regulations. In this regard, the Virtual Assets Committee will review global trends and regulatory frameworks with a view to imposing stricter obligations on virtual assets Stablecoin Issuer. This will ensure asset reserves and redemption rights.
Vice Chairman Kim So-young reportedly noted that South Korea must align with global regulatory trends. He cited the EU’s Virtual Asset Markets Act (Mika) and similar initiatives in Hong Kong and Singapore. The United States has also prioritized stablecoin regulation, which is a focus of South Korea’s upcoming legislative phase.
“Our regulatory system aims to develop a comprehensive law. After discussions in 12 subcommittees and working-level working groups, the policy review is nearly complete. We will report the results to the Virtual Assets Committee as soon as possible and ensure the implementation of follow-up procedures.”, local media reportquoting Kim So Young.
The FSC plans to establish working groups and subcommittees to review these projects, with the goal of preparing a detailed Phase 2 bill by the second half of 2025.
Meanwhile, the first phase of the Virtual Asset User Protection Act marks the beginning of the regulatory era in South Korea. According to BeInCrypto, Early stage brought about significant developments, including Upbit’s public disclosure under the new law.
However, Upbit, South Korea’s largest cryptocurrency exchange, is facing an antitrust investigation. FSC mark Over 600,000 potential KYC (Know Your Customer) breaches. The government’s scrutiny has raised questions about the exchange’s practices, with Vice Chairman Kim stressing the need for comprehensive regulatory reforms.
resolve past disputes
South Korea’s regulatory path is not without its challenges. 2019, North Korea stole 342,000 Ethereum (ETH) from Upbitdraws attention to the need for better Safety measure. The FSC’s efforts to strengthen regulation include addressing these loopholes while balancing innovation and stability.
The government also announced plans Lifting ban on corporate cryptocurrency investmentsdemonstrating its commitment to promoting institutional engagement.
Despite its High delisting rateSouth Korea remains a significant player in the global cryptocurrency market. According to BeInCrypto, the country Ranked 3rd among leading crypto hubs Second only to Dubai and Switzerland. Additionally, South Korea’s cryptocurrency trading volume surged, reflecting Increasing adoption and the public’s ability to adapt to regulatory shifts.
The FSC is committed to striking a balance between innovation and stability, which is evident in its approach to developing the Virtual Asset User Protection Act. By cultivating a transparent and secure ecosystem, South Korea aims to become a global leader in virtual asset regulation.
As the country prepares for the second phase of its cryptocurrency regulatory framework, it sets a precedent for other countries in the fast-paced digital asset market.
Disclaimer
follow trust project BeInCrypto is committed to fair and transparent reporting. This news article is designed to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on the content of this article. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
