- The South Korean Financial Services Commission proposed new regulations to increase screening of crypto executives, requiring approval before management changes take effect.
- The amendment introduces stricter criteria for financial institutions to provide real-name accounts to crypto operators, including proof of capabilities and legal compliance.
- The public can provide feedback on the proposed amendment until March 4, 2024, as part of an open consultation process by the government.
The South Korean Financial Services Commission (FSC) has announced significant legislative amendments aimed at tightening regulations surrounding virtual asset business operators, specifically focusing on the accountability and duties of crypto executives.
New Screening Requirements for Executives
Central to the proposed changes is the introduction of stringent requirements for changes in the management of virtual asset businesses. Under the new regulations, any alteration in the representative or executive positions within such businesses must be reported and approved before the new appointees can officially assume their roles.
Other Notable Amendments
The amendment also introduces several other modifications to enhance the regulatory framework for virtual assets. It simplifies the reporting processes for virtual asset businesses by setting up pre-reporting and post-reporting mechanisms, potentially exempting certain changes from undergoing a comprehensive review.
Additionally, financial institutions must meet more stringent criteria when issuing real-name accounts to virtual asset operators, including proving their capability in human and infrastructural resources and adhering to due diligence and legal compliance.
Furthermore, the amendment outlines procedures for the suspension and subsequent resumption of report reviews when there are delays in verifying necessary facts. It also defines conditions under which authorities can cancel reports without prior notice, especially when a financial transaction order is significantly disturbed due to legal violations or misconduct by executives.
Conclusion
The Financial Services Commission seeks public input on the amendment until March 4, 2024. This open consultation period reflects the government’s dedication to transparency and stakeholder engagement in the legislative process. Individuals and organizations are encouraged to review the proposed changes and submit feedback, contributing to a more inclusive and well-rounded regulatory framework.
