South Korea To Introduce Virtual Assets Distribution & Listing Regulation
In a significant move shaping the future of cryptocurrency in South Korea, the Financial Supervisory Service (FSS) is set to release comprehensive guidelines, marking a pivotal step in regulating virtual assets. Addressing concerns around issuance, circulation, and listing standards, the FSS aims to establish a robust framework for the burgeoning digital asset market.
Meanwhile, this development aligns with global efforts towards crypto regulation, underlining South Korea’s commitment to fostering transparency and preventing illicit activities in the crypto space.
South Korea To Unveil New Crypto Guidelines
The Financial Supervisory Service (FSS) is making waves in the crypto sphere by introducing groundbreaking guidelines for virtual assets, as revealed on January 8, 2024. According to the report, Ahn Byeong-nam, head of the Digital Asset Research Team at the FSS, disclosed during a policy discussion that the guidelines encompass issuance volume, circulation, and listing standards. Highlighting the collaborative effort with exchanges, Byeong-nam emphasized the need for nuanced guidelines given the diverse nature of crypto markets.
Meanwhile, this announcement follows the mid-October revelation that South Korea’s financial regulatory authorities were crafting new regulations for the virtual asset market, covering listing procedures, internal controls, and issuance and circulation volume. As per CoinGape’s previous report, these regulations are the outcome of in-depth research commissioned by the National Assembly.
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Redefining Crypto Landscape
The latest move to unveil the listing and distribution guidelines is part of a broader trend in South Korea’s evolving crypto landscape. Recently, the Financial Services Commission (FSC) amended the Credit Finance Act to restrict credit card use in crypto transactions, aiming to curb potential fund misuse and speculative activities. Notably, the primary focus of this move is to prevent citizens from purchasing cryptocurrencies on foreign exchanges, citing concerns over illegal fund outflow, money laundering, and speculative behavior.
In another development, South Korea’s National Tax Service clarified its stance on virtual assets, offering relief to decentralized wallet holders. Meanwhile, this announcement affirms that individuals using non-custodial, decentralized wallets will not be subject to overseas financial account reporting, providing clarity amid concerns about reporting requirements. This decision comes after the National Tax Service included virtual assets in overseas financial account reporting from June 2023.
In addition, as part of efforts to enhance accountability and transparency, the South Korean government has mandated nearly 6,000 officials to disclose their cryptocurrency holdings starting January 1, 2024. This move marks a significant step in the nation’s approach to handling virtual assets, reinforcing the commitment to responsible crypto management.
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