In a move to bolster regulatory control in the cryptocurrency sector, South Korea’s Financial Services Commission (FSC) has unveiled a set of proposed amendments. If enacted, these changes could significantly enhance the authority of the local regulator over the crypto industry.
Mandatory approval for new crypto executives
The key proposal entails mandatory regulatory approval for new executives joining cryptocurrency companies. This requirement, not currently outlined in the country’s laws, means that new executives will need the FSC’s green light before assuming their roles.
The FSC aims to address shortcomings in the current regulations governing the local cryptocurrency industry. By introducing this amendment, the regulator seeks to ensure greater transparency and oversight within the sector.
Enactment expected in March
These amendments are set to undergo revision by the Ministry of Government Legislation and a voting process by the FSC. The anticipated timeline for their enactment is at the end of March, as reported by local news outlet Money Today.
Another significant aspect of the proposed amendments is the authority granted to the FSC to suspend the review of a cryptocurrency company’s license registration. This suspension can occur if the company or its members become subjects of investigation by local or international regulators.
Binance responds
In response to these regulatory concerns, cryptocurrency exchange giant Binance announced plans to reduce its stakes in the South Korean exchange Gopax. Binance currently holds the largest share in Gopax. The FSC had delayed approving Gopax’s structural changes, possibly due to concerns related to Binance’s legal issues in the United States.
To ensure transparency and inclusivity, the FSC is actively seeking public feedback on these proposed amendments until March 4. The regulator values input from the community as it continues to refine and improve regulations in the cryptocurrency sector.
Strengthening oversight In South Korea
The proposed changes mark a significant step toward strengthening oversight and regulation within South Korea’s cryptocurrency industry. By requiring regulatory approval for new executives and introducing suspension powers for license reviews, the FSC aims to create a more robust and accountable crypto ecosystem.
South Korea’s Financial Services Commission is taking proactive measures to address the evolving landscape of cryptocurrency. These proposed amendments, set to be enacted in March if approved, emphasize the importance of regulatory control and transparency within the crypto sector. The move is seen as a crucial step in aligning South Korea’s cryptocurrency regulations with global standards while addressing the concerns of local and international regulators. Public feedback on these proposals is encouraged, demonstrating the FSC’s commitment to engaging with stakeholders for well-informed decision-making.
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