A task force comprising private-sector experts and relevant ministries will “expedite the review process of bills on virtual assets,” said chairman of South Korea’s Financial Services Commission (FSC) Kim Joo-hyun at Thursday’s National Assembly meeting.

See related article: South Korea’s all-encompassing crypto law is coming — what we know so far

Fast facts

  • Kim said the upcoming crypto legislation will take a “balanced” approach towards the development of blockchain technology, investor protection and market stability, according to local media reports.
  • “Considering the characteristics of virtual assets which are decentralization, anonymity, and transnationality, [the FSC] will communicate internationally and match global regulatory consistency,” said Kim.
  • South Korea’s President Yoon Suk-yeol has promised the legislation of a comprehensive set of regulations on crypto, tentatively named the Digital Asset Basic Act that will emerge from 13 proposals to be debated in the National Assembly.
  • Market talk about the new legislation intensified after the collapse of South Korean crypto project Terra-LUNA, which affected an estimated 280,000 people in the country.
  • Since his appointment as FSC chairman last month, Kim has also announced comprehensive reform on the country’s financial regulations in line with the global digital transition, which could allow South Korean banks to directly pursue business in the crypto space.

See related article: Scarred by Terra-LUNA, South Korea moves ahead with digital asset reform