South Korea is set to launch a new policy advisory body, the Virtual Asset Committee, as early as this month.
The committee will accelerate discussions on key issues including the approval of virtual asset spot exchange-traded funds (ETFs), corporate investment in virtual assets and the introduction of second-stage legislation.
It includes 15 members and will be led by Vice Chairman Kim So-young of the Financial Services Commission (FSC). It will include six government officials from key ministries, such as the Ministry of Justice and the Ministry of Science and ICT, as well as nine members from the private sector.
The committee is created under the law on the protection of users of virtual assets, which came into force in July. High on the agenda is the introduction of spot ETFs, already listed in the US for Bitcoin and Ethereum, but which remain unavailable in Korea. Advocates have pushed for these ETFs, especially after the last general election, arguing that their approval would modernize Korea’s financial market and increase competitiveness.
FSC aims to balance innovation and regulation in South Korean crypto market
The Financial Services Commission recently announced plans to examine the possibility of introducing spot ETFs and corporate virtual asset accounts during a state audit. In addition to ETF and corporate investment approvals, the committee will oversee the development of second-stage legislation. This process should take place gradually, with the FSC closely following market trends and global developments. The initial legislation, the Virtual Asset User Protection Act, introduced basic regulations for virtual asset operators, while the second phase will focus on regulating securities issuance and listing practices. virtual assets.
The FSC highlighted that future guidelines will cover business operations, market entry, issuance and disclosure, all within the framework of a newly created statutory association. FSC Chairman Kim Byung-hwan said during the Oct. 10 state audit that it was necessary to protect the market while encouraging growth and innovation.
Responding to Democratic Party Rep. Lee Kang-il’s concerns about Korea’s declining competitiveness in the global crypto market, Kim stressed the importance of balancing industry support with strong regulation. “I think we need to balance protection and promotion (of the virtual asset market). Since there are tasks to improve the system, we will form a virtual asset committee composed of private sector experts to review it in-depth,” Kim said.
A report from Chainalysis previously noted that South Korea remains the largest market in East Asia. South Korea reportedly leads the East Asia region in cryptocurrency value received, totaling around $130 billion during the period studied.
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Gairika holds positions within BTC. This article is provided for informational purposes only and should not be considered financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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