Kim Joo-hyun, the chairman of South Korea’s top financial regulator, the Financial Services Commission (FSC), said on Thursday the agency will promote blockchain technology and user protections in the crypto market.

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Fast facts

  • “In cooperation with the National Assembly, we will actively support the establishment of a regulatory system for virtual assets that balances innovation through new technologies such as blockchain, consumer protection and financial stability,” Kim said during his opening remarks at the National Assembly parliamentary audit on the FSC on Thursday.
  • Kim also underscored FSC’s upcoming reform on financial regulation in line with the era of digital transition, which includes reviewing the current ban on financial institutions such as banks from directly entering the crypto market.
  • Kim added the FSC will utilize the existing regulation on cryptocurrencies to supervise virtual asset service providers (VASP), and that the agency will work with other departments such as investigative agencies to ensure a safer environment for crypto users.
  • South Korea is preparing new regulations on cryptocurrencies, tentatively named the Digital Asset Basic Act, which is expected next year with a focus on holding higher standards for crypto token issuers and developers. 

See related article: S.Korea to set up securities market for crypto tokens