FSC Suggests Crypto Executives Must Obtain Regulatory Approval
The Financial Services Commission (FSC) of South Korea is contemplating a new proposal that would require executives in the crypto industry to obtain regulatory approval before assuming their roles. In a document released on February 5th, the FSC stated that it is working on a series of improvements that would necessitate new crypto business executives to acquire regulatory approvals before taking up their positions. The specifics of the proposal are still subject to revision by the Ministry of Government Legislation, but it is expected to come into effect by the end of the first quarter of 2024.
This regulatory measure goes beyond the crypto sector and reflects the FSC’s broader objective of asserting greater authority over the financial market. FSC Chair Lee Bok-hyun emphasized the commitment to cracking down on lax risk management practices, stating that the authorities will not tolerate the practice of passing on risks to consumers and society by prioritizing short-term profits without careful risk management, as reported by Reuters.
In the meantime, the South Korean President’s office has urged the country’s financial regulator to reconsider the possibility of allowing spot Bitcoin (BTC) exchange-traded funds (ETFs) to be traded within the country. It is worth noting that the local FSC had previously warned South Korean firms against brokering transactions in foreign spot Bitcoin ETFs, citing potential violations of capital market regulations.
Tae Yoon Seong, head of the political department of the presidential administration, acknowledged that with the approval of spot Bitcoin ETFs in the United States, Korean authorities are exploring the possibility of making appropriate changes to the country’s legal system or considering whether foreign practices can be accepted domestically.
Read more: South Korea to strengthen control over crypto mixers. Follow Us on Google News.
