South Korea Sets New Pre-Approval Rule for Crypto
South Korea is set to enforce a new regulation requiring cryptocurrency company executives to obtain prior approval from the Financial Services Commission, marking a significant step towards tightening oversight in the crypto market.
South Korea to Tighten Rules on Crypto Company Leaders
South Korea plans to tighten the rules for leaders of cryptocurrency companies by requiring them to get approval from the country's financial regulator, the Financial Services Commission (FSC), before they can start their jobs. This new rule is part of proposed changes to how cryptocurrency services report their activities and is expected to be in place by the end of March 2024.
On February 5, the FSC announced it wants to check the backgrounds of new executives in crypto firms before they are allowed to work. Companies will have to inform the FSC about any changes in their leadership, and approval from the FSC will be needed for these changes to take effect.
The changes are part of a broader effort by South Korean authorities to increase control over the cryptocurrency market in the country. These moves include efforts to regulate the use of crypto mixers, which can hide the origin of cryptocurrency transactions, and to stop South Koreans from buying cryptocurrency with credit cards to prevent illegal money transfers and money laundering.
The FSC is currently seeking public opinions on these proposed rules until March 4. This step indicates the government's intent to involve the community in shaping the future regulatory landscape for cryptocurrencies in South Korea.
By making these adjustments, South Korea aims to ensure a safer and more regulated environment for cryptocurrency trading and operations within its borders, reflecting a growing trend of countries around the world looking to find the right balance between innovation and consumer protection in the rapidly evolving crypto space.
