Local reports state that the Financial Supervisory Service (FSS) of South Korea is preparing regulations to go along with the Virtual Asset Users Protection Act that was passed earlier in 2023.

Before the law takes effect, new regulations should be ready by January, according to the FSS director.

On October 17, the Political Affairs Committee of the South Korean National Assembly conducted an audit of the Financial Supervisory Service (FSS).

During that, FSS head Lee Bok-hyeon addressed complaints that South Koreans were losing money on cryptocurrency "burger coins," a term used in Korea to refer to foreign-issued cryptocurrencies that are traded in the nation.

According to the South Korean press coverage of the audit, the FSS will set standards for listing practices, internal controls, issuance and distribution of virtual assets, as well as a "virtual asset market supervision and inspection system."

The Digital Asset eXchange Association (DAXA), which is made up of the regional cryptocurrency exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax, is currently discussing the upcoming regulations, according to Lee.

Lee stated that the legislation passed in June lacked specific regulatory language. Although Lee claimed that the law did not give his agency enough power, it did establish criminal liability for violations.

"We will consult with DAXA if there is truly an act that amounts to manipulation of distribution volume through staking or unfair disclosure," Lee said. He went on:

“There are related systems in place in the securities sector for various screenings related to the issuance market, but there are no related systems in place at DAXA or individual exchanges.”

The Joint Investigation Centre for Crypto Crimes, a joint unit to investigate crimes involving virtual assets, has been announced by South Korean law enforcement.

30 employees, including those from the FSS, National Tax Service, Korea Customs Service, and other departments, will work for it.

Sources:

https://cointelegraph.com/news/south-korean-regulator-enhance-digital-asset-legislation

https://biz.sbs.co.kr/article/20000139678

https://www.edaily.co.kr/news/read?newsId=02952006635773904&mediaCodeNo=257&OutLnkChk=Y

https://en.yna.co.kr/view/AEN20230704004000320