South Korea’s Financial Services Commission (FSC) has reportedly initiated the second phase of discussions on the country’s crypto regulations, the Virtual Asset User Protection Act.
During a recent meeting in Seoul, FSC Vice Chairman Kim So-young emphasized the importance of keeping up with global regulatory trends. He highlighted examples such as the EU’s Markets in Crypto-Assets (MiCA) framework and similar initiatives in Hong Kong, Singapore, and the United States.
In line with these developments, Kim noted that the FSC wants to establish an integrated law covering businesses, markets, and users. The discussions are expected to consider how it plans to regulate stablecoins, asset listings, and virtual asset exchange operations. Stablecoins and how they are managed is a key priority, and the focus would be on ensuring issuer accountability and protecting user redemption rights
The FSC will reportedly form a task force and subcommittees to refine the details of the legislation, and the finalized bill is expected later this year.
This development follows the FSC’s initiative to gradually permit corporate investment in virtual assets as part of its 2025 business plan to promote Web3 adoption. The FSC plans to collaborate with the Virtual Asset Committee to approve real-name accounts for corporations, beginning with non-profit entities. Only accounts verified under the Specific Financial Information Act will be allowed to invest. While corporate real-name accounts aren’t legally restricted, banks have been advised against creating them.
Meanwhile, Eun-bo Jeong, Chairman of the South Korea Exchange, has expressed the desire to work towards approving cryptocurrency exchange-traded funds (ETFs) to revitalize the country’s financial markets. Speaking at the 2025 Securities and Derivatives Market Opening Ceremony, Jeong emphasized the potential of crypto ETFs as alternative assets to attract investors, especially after a downturn caused by political instability. He outlined plans to explore new sectors, including cryptocurrency ETFs, drawing from global examples to rejuvenate the market and attract both domestic and international investors.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
