South Korea Proposes Regulatory Approval Requirement for Crypto Executives

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By BitcoinWiki News

Key Takeaways:

– South Korea’s financial regulator proposes amendments for regulatory approval of new executives joining cryptocurrency companies
– New executives in South Korean crypto companies will need approval from the Financial Services Commission (FSC)
– FSC gains power to suspend review of a crypto company’s license registration if under investigation
– Amendments expected to come into effect by the end of March
– Binance exploring options to reduce stake in the South Korean exchange Gopax due to FSC concerns
– FSC seeking public feedback on proposed amendments until March 4
– High-ranking public officials in South Korea required to disclose cryptocurrency holdings starting next year
– Lee Bok-hyun, South Korea’s Financial Supervisory Service head, to discuss spot Bitcoin ETFs with U.S. SEC Chairman Gary Gensler in the United States

1. Proposed Amendments to South Korea’s Crypto Industry Regulations
The Financial Services Commission (FSC) in South Korea has proposed new amendments that would require regulatory approval for new executives joining cryptocurrency companies. The aim is to address current pain points in the country’s crypto industry legislation and enhance the authority of the financial watchdog over the local sector. If enacted, the amendments would necessitate approval from the FSC for newly appointed executives in South Korean crypto companies. The FSC would also have the power to suspend the review of a crypto company’s license registration if the company or its members are under investigation by regulators.

2. Timeframe and Revisions for the Amendments
The proposed amendments are expected to come into effect by the end of March and will undergo revision by the Ministry of Government Legislation. Following this, there will be a voting process by the FSC. The regulatory body has also sought public feedback on these proposed amendments until March 4.

3. Binance’s Stake in South Korean Exchange Gopax
Binance, a prominent cryptocurrency exchange, has revealed its plans to reduce its stake in the South Korean exchange Gopax in response to concerns raised by the FSC. The FSC has delayed approving Gopax’s structural change since Binance’s acquisition, possibly due to Binance’s legal issues in the United States.

4. Disclosure of Cryptocurrency Holdings by South Korean Public Officials
Starting next year, high-ranking public officials in South Korea will be required to disclose their cryptocurrency holdings. This proactive approach is aimed at addressing potential conflicts of interest and promoting integrity within the public sector. The requirement will apply to high-ranking officials across various government agencies and departments, who will be obligated to report their cryptocurrency holdings, including details of the assets they own and the respective amounts.

5. Discussion with U.S. Securities and Exchange Commission
Lee Bok-hyun, South Korea’s head of the Financial Supervisory Service, is set to visit the United States to discuss the crypto industry with U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler. The official aims to speak with Gensler regarding spot Bitcoin ETFs.

Overall, the proposed amendments in South Korea’s crypto industry regulations, along with the requirement for disclosure of cryptocurrency holdings by public officials and discussions with the U.S. SEC, reflect significant developments in the country’s approach to regulating and overseeing the cryptocurrency sector.

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