South Korea's FSS preparing supplementary regulations for Virtual Asset Users Protection Act
The FSS intends to finalise the new virtual asset regulations before the implementation of the Virtual Asset Users Protection law
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On October 17, Lee Bok-hyun, head of South Korea’s Financial Supervisory Service (FSS), announced that the FSS is preparing regulations to supplement the Virtual Asset Users Protection Act (VAUPA) passed earlier this year.
The announcement was made during the National Assembly Political Affairs Committee audit of the FSS in Yeouido, Seoul. The National Assembly had ordered the Financial Services Commission (FSC) and the FSS to review the additional virtual asset discipline system and report on it by Jul 19 of next year, when the VAUPA law goes into effect.
According to the FSS head, the new virtual assets-related regulations will be ready by January, well before the VAUPA law enters into force.
The matters to be reviewed by the FSS include the resolution of conflicts of interest during the issuance and distribution of virtual assets, a disciplinary system for stablecoins, and a disciplinary system for businesses involved in virtual asset valuation, advisory services, and public disclosure.
Additionally, there is a focus on crafting a plan for establishing and operating an integrated market price and disclosure system and creating a ‘deposit law’ to address contingencies. The new regulations will be established in accordance with the ‘Virtual Asset User Protection Act.’
