Financial regulator for South Korea will push for blockchain
Financial regulator for South Korea will?push for blockchain and cryptocurrency security.?Financial Services Commission (FSC) chairman Kim Joo-hyun said recently that the agency will promote blockchain technology and user protections in the crypto market.
During his opening remarks at the National Assembly parliamentary audit of the FSC on Thursday, Kim said, that will actively support the establishment of a regulatory system for virtual assets that balances innovation through new technologies like blockchain, consumer protection, and financial stability.
In keeping with the age of digital change, Kim also emphasized the plan of FSC to reform financial regulation, which would involve reexamining the present prohibition on financial institutions like banks from directly entering the cryptocurrency market.
The FSC will use the current cryptocurrency regulations to monitor virtual asset service providers (VASP), and the organization will collaborate with other departments including investigative agencies to provide a safer environment for crypto consumers, according to Kim.
In order to hold crypto token issuers and developers to a higher standard, South Korea plans to introduce new regulations on cryptocurrencies next year tentatively called the Digital Asset Basic Act.
There has been intense scrutiny of Terraform Labs, whose project collapsed in May after events affecting the crypto market. Interpol's arrest warrant has not affected Do Kwon, the co-founder of the project.
CBW - External Analyst