The Financial Supervisory Service of South Korea, the nation’s regulatory body, has advocated establishing a uniform system for mandatory information disclosure from digital asset exchanges and cryptocurrency issuers to provide more reliable data and protect investors from fraud.
Ahn Byung-nam, the head of the regulator’s Digital Asset Research, claims that a uniform mandatory disclosure system regarding the creation, listing, and circulation of cryptocurrencies will improve investor protection.
He believes that public laws should be adopted to enforce market discipline in the digital assets market and protect users, but should not be too intrusive to harm the growth of blockchain-based products.
Byung-nam continued by stating that it is essential to institutionalize the requirement for disclosure of significant information on digital assets in terms of distribution as well as the mandatory disclosure of the white paper’s key elements in terms of issuance and listing.
Jeon In-tae, a mathematics professor at Catholic University, believes that disclosure of information can improve market efficiency and protect investors. According to him, it should be considered an obligation of a digital asset issuing institution.
According to Jeon In-tae, the majority of digital asset evaluation firms lack the necessary professional workforce as well as established qualifications for experts. He continued by saying that in order to manage and oversee them correctly, the relevant authorities must set up a system of continuous monitoring.
Jeon In-tae stated:
“It is necessary to establish an integrated system that systematizes the issuer’s disclosure scope and process by introducing a mandatory disclosure system and integrates and discloses disclosures from various exchanges.”
The Financial Intelligence Unit (FIU) of the Financial Services Commission has announced that as part of its inspection plan for virtual asset operators this year, it will examine the implementation and operation of the anti-money laundering (AML) system for coin market operators and wallet operators.
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