- South Korea’s financial regulator has proposed new amendments.
- The amendments target crypto executives and CEOs.
- The amendment could go into effect by the end of May.
The Financial Services Commission (FSC) has proposed amendments requiring new South Korean crypto executives to undergo vetting before assuming duties in the country.
The development comes as local regulators quickly move to tame South Korea’s crypto industry with tighter regulations and sanctions against unscrupulous actors. If passed, the amendments will give the FSC more authority over crypto.
South Korea Crypto Oversight Extends to Executives
In a legislative notice issued on February 5, the FSC proposed a major overhaul of its virtual asset service provider (VASP) reporting framework to “complement the loopholes in the current system” that allow ineligible persons to perform executive duties at crypto firms, especially during a transition period.
Under the proposed law, the FSC will have the authority to screen executives before they join South Korean crypto firms. At the same time, the companies will be mandated to report changes in personnel to the regulator.
Per the statement, new executives can perform their duties at their respective companies only if the regulator accepts the submitted change report.
“If the representative or executive of a virtual asset business is changed, a new regulation is established requiring the virtual asset business to take measures to ensure that the changed representative or executive can perform his or her duties after the change report is accepted,” the FSC wrote.The proposed amendments further give the FSC the authority to suspend a crypto firm’s license registration review in scenarios where local or overseas regulators are investigating the company.
According to a local media report, the amendments will likely be enacted by the end of March following several procedures, including public participation and a review from the Ministry of Government Legislation.
Read about South Korea’s Bitcoin ETF plan:
South Korea Plans Bitcoin ETF Talks with SEC Chair Gensler
Stay updated on why South Korea warned brokers against trading Bitcoin ETFs:
South Korea Warns Brokers Against Bitcoin ETF Trading
