The Financial Services Commission of South Korea plans to implement revised virtual asset service provider reporting requirements by the end of March 2024.
South Korea’s financial watchdog, the Financial Services Commission (FSC), has proposed new regulations requiring regulatory approval for executives in crypto projects.
On Feb. 5, the Financial Services Commission of South Korea introduced new VASP reporting requirements.
These regulations, if approved, would empower the FSC to approve or deny new executives at crypto companies.
Crypto companies under these proposed regulations would have to report any changes in their personnel to the FSC.
Crypto executives would need approval from the FSC before starting their jobs, as their personnel change reports must be approved by the regulator.
Local news outlet Money Today anticipates finalization of the amendment by the end of March 2024, pending approval from the Ministry of Government Legislation and the FSC.
If approved, the revised regulations will apply to VASP renewal reports in the second half of 2024.
The proposed regulations could impact the renewal of companies’ VASP licenses.
The proposed changes aim to authorize the FSC to halt the examination of VASP license applications if ongoing investigations by local or international authorities involve its staff members.
The South Korean regulatory body seeks public input regarding the proposed amendment. There is a deadline of March 4 for public comments on the proposed amendment.
South Korean regulators are increasingly working on stricter crypto regulations.
On January 15, local outlet Decenter reported that South Korea’s Financial Intelligence Unit is exploring legislation to address crypto mixers.
South Korea’s Financial Intelligence Unit is working on new rules due to the growing use of crypto mixers for money laundering.
The FSC has raised concerns that illegal money outflows and money laundering could occur when South Koreans buy crypto on foreign exchanges.
A new legislative notice proposed by the FSC on January 3 would prohibit South Koreans from purchasing crypto with credit cards.
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