In a significant move to strengthen oversight within the cryptocurrency industry, South Korea’s Financial Services Commission (FSC) has introduced proposed amendments that mandate regulatory approval for executives joining cryptocurrency companies.

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• South Korea’s Financial Services Commission Proposes Regulatory Approval for Crypto Executives – New amendments seek FSC approval for executives joining cryptocurrency companies.
• Amendments Aim to Enhance Oversight and Address Existing Industry Challenges -Proposed changes empower the FSC to suspend license reviews during investigations.
• Amendments Expected to Take Effect by End of March – Revisions underway, subject to Ministry of Government Legislation and FSC voting; public feedback sought until March 4.

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South Korea’s Financial Services Commission Proposes Regulatory Approval Requirement for Crypto Executives

The FSC’s official announcement highlights the intention to address existing challenges in the current legislative framework governing the country’s crypto sector. If enacted, the amendments would necessitate newly appointed executives in South Korean crypto firms to secure approval from the FSC before assuming their roles.

The proposed changes also empower the FSC to suspend the review of a crypto company’s license registration if the company or its members are under investigation by local or international regulators. Such provisions are not currently outlined in the country’s existing laws regarding the use and reporting of financial transaction information.

According to local news outlet Money Today, the amendments are expected to come into effect by the end of March. The proposed changes will undergo a revision process by the Ministry of Government Legislation and will subsequently be subject to a voting process by the FSC.

Last week, Binance, a major cryptocurrency exchange, disclosed its exploration of options to reduce its stake in the South Korean exchange Gopax, where it currently holds the largest share. This move is in response to concerns raised by the FSC, which has delayed approving Gopax’s structural changes since Binance’s acquisition, potentially due to Binance’s legal issues in the United States.

The FSC is currently seeking public feedback on the proposed amendments until March 4. In December of the previous year, South Korea announced that high-ranking public officials would be obligated to disclose their cryptocurrency holdings starting this year. This proactive approach, as highlighted by the country’s personnel ministry, aims to address potential conflicts of interest and promote integrity within the public sector.

To ensure the highest ethical standards, high-ranking officials across various government agencies and departments will be required to report details of their cryptocurrency holdings, including the assets they own and their respective amounts. Meanwhile, Lee Bok-hyun, South Korea’s head of the Financial Supervisory Service, is set to visit the United States to discuss the crypto industry with U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler. The focus of the discussion will be on spot Bitcoin exchange-traded funds (ETFs).

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