The Financial Services Commission (FSC) of South Korea is considering a new proposal that would require executives in the crypto industry to obtain regulatory approval before assuming their roles.
According to a document posted on the FSC’s official website on February 5th, the commission is working on a series of new enhancements that would mandate regulatory approval for new executives in crypto companies before they start their positions.
While the specific details of the proposed initiative are still subject to revision by the Ministry of Government Legislation, it is expected that the changes will be implemented by the end of the first quarter of 2024.
This regulatory action goes beyond just the crypto sector, demonstrating the FSC’s broader goal of asserting greater authority over the financial market. FSC Chair Lee Bok-hyun emphasized a commitment to cracking down on inadequate risk management practices, stating that authorities “will not tolerate practices that transfer risks to consumers and society in pursuit of short-term profits without proper risk management,” as reported by Reuters.
In a separate development, the South Korean President’s office has encouraged the country’s financial regulator to reconsider the possibility of allowing spot Bitcoin (BTC) exchange-traded funds (ETFs) to operate within the country. Previously, the local FSC had warned South Korean companies against engaging in transactions with foreign spot Bitcoin ETFs, citing potential violations of capital market regulations.
Tae Yoon Seong, head of the political department of the presidential administration, highlighted that with the approval of spot Bitcoin ETFs in the United States, Korean authorities are looking into making “appropriate changes in our country’s legal system or evaluating whether practices abroad can be accepted in our country.”
For more information, South Korea is planning to strengthen its oversight of crypto mixers.