ChainCatcher news, according to Ledger Insights, the Bank of Korea has announced a cooperation agreement with the Ministry of Science and ICT (MSIT) and the Financial Services Commission (FSC) to jointly test the feasibility of digital currency (CBDC) and tokenized deposits.The central bank plans to pilot tokenized deposits among 100,000 people by the end of the year and achieve interbank settlement through wholesale CBDC. In this trial, seven domestic banks will participate, and tokenized deposits will be protected under the current deposit insurance system.In addition, the central bank has developed a digital voucher platform to reduce the complexity and fraud risk associated with paper voucher settlements.

ChainCatcher news, a new South Korean regulatory body will be established this month, with the decision on Bitcoin ETF approvals as a key focus of its agenda. The agency is temporarily named the Virtual Assets Committee and may hold its first meeting "as early as this month."The agency will operate under the jurisdiction of the Financial Services Commission (FSC) of South Korea. Analysts say its establishment will help "accelerate discussions on issues such as the approval of Bitcoin and Ethereum spot ETFs." Industry insiders revealed that the committee will also discuss the issue of "allowing corporate investments in virtual assets."

ChainCatcher news, the chairman of the Financial Services Commission of Korea, Kim Byung-hwan, stated that he will review the monopoly phenomenon in the virtual asset market centered around Upbit. During the national policy inspection by the National Assembly's Administrative Committee, Kim Byung-hwan responded to questions from lawmakers regarding the monopoly structure of Upbit, pointing out that a comprehensive review will be conducted through the Virtual Asset Committee.Lawmakers also questioned the partnership between Upbit and K Bank, stating: "K Bank's total deposits amount to 22 trillion won, of which Upbit's deposits reach 4 trillion won, accounting for as much as 20%. If Upbit's trading is interrupted, K Bank could face a run on the bank."

ChainCatcher news, the South Korean Financial Services Commission has clearly stated that it will actively support the second phase of virtual asset legislation. Kim Sung-jin, the head of the Virtual Asset Division of the Financial Services Commission, stated that the policy direction of the United States will serve as an important reference for South Korea's virtual asset legislation, and pointed out that a strategic approach is needed in the areas of security tokens and central bank digital currencies (CBDC) to expedite the National Assembly's discussions on the revision of related bills such as the Capital Markets Act.The South Korean authorities plan to focus on discussing the operational behaviors and qualification requirements of virtual asset service providers in the second phase of virtual asset legislation.Members of the National Assembly also believe that digital asset legislation is an urgent task. A member of the National Assembly's Policy Committee stated that digital assets are expected to create a new financial order and bring opportunities and challenges to the South Korean economy.

ChainCatcher news, the Financial Services Commission of Korea requires virtual asset exchanges that have ceased operations to sign "virtual asset business insurance." Some closed exchanges, such as Gdac and Hanbitco, have already purchased insurance, while others, like Huobi Korea, are considering buying insurance.The insurance for virtual asset service providers is intended to help businesses cope with risks such as hacking attacks and system failures. Last month, with the implementation of the "Virtual Asset User Protection Act," purchasing insurance became a mandatory requirement.According to the "User Protection Act," continuing operations without accumulating reserves or without joining an insurance policy with a compensation limit of at least 5 billion won will result in fines and the inability to continue operations.

ChainCatcher news, according to Decenter, the Financial Services Commission (FSC) of South Korea has announced that it has signed a memorandum of understanding with the Korea Internet & Security Agency (KISA) to cooperate in investigating unfair trading of virtual assets. This is due to numerous allegations of market manipulation in the virtual asset market and fraudulent transactions combined with information technology (IT).FSC Chairman Lee Bok-hyun stated, "Unlike capital markets, unfair trading of virtual assets requires digital information analysis, such as fact-checking related to cyber attacks. We will establish a real-time response system with KISA to prevent disguised cyber attacks or manipulation of digital information. For example, if a digital asset issuer hides code for manipulating the network in a smart contract, arbitrarily changing the issuance and circulation amounts, which contradicts the digital asset allocation plan stated in the white paper, then digital information analysis will be necessary."

ChainCatcher news, according to local media EBN, the Financial Services Commission (FSC) of South Korea announced that it will not directly participate in the inspection of cryptocurrencies listed on Korean exchanges.Previously, there were rumors that South Korean financial regulators planned to delist cryptocurrencies that did not meet listing requirements before July of this year. The FSC stated that it only inspects cryptocurrency operators and does not directly inspect tokens. The final announcements regarding token inspections and delistings will be the responsibility of the cryptocurrency exchanges and the Korea Digital Asset Exchange Alliance (DAXA), which is the consulting body for Korean digital asset exchanges.

ChainCatcher news, according to South Korean media reports, the proposal to establish a Virtual Assets Division by the Financial Services Commission of South Korea has been approved by the Cabinet meeting.It is reported that the revised job structure and related implementation rules will be announced and implemented on the 25th of this month. The Virtual Assets Division will be responsible for establishing order in the virtual asset market and protecting users through necessary management and supervision. The department will temporarily increase its staff by 8 (by the end of 2025), including 1 level 4 employee, 4 level 5 employees, 2 level 6 employees, and 1 level 7 employee.

ChainCatcher news, according to Asiae, the Financial Services Commission of South Korea plans to establish a new virtual asset department under the Financial Innovation Planning Group, with the appointment of management personnel to be completed by the end of June at the latest. The Financial Services Commission is providing relevant training for virtual asset investigators, and this department will be fully responsible for the "Virtual Asset User Protection Act," which will take effect on July 19.

ChainCatcher news, the South Korean Financial Services Commission reiterated its commitment to restricting financial institutions from issuing cryptocurrency ETFs, stating that the stability of the financial market and investor protection are the reasons for maintaining the current restrictions. Currently, South Korea's Capital Markets Act limits the underlying assets of investment contract securities such as ETFs to financial investment instruments, currencies, and ordinary goods, but does not include cryptocurrencies.

ChainCatcher news, South Korea's top financial regulator, the Financial Services Commission (FSC), today proposed amendments to its Credit Finance Act, aimed at prohibiting domestic citizens from using credit cards to purchase cryptocurrencies on overseas trading platforms.In response, the FSC stated that this decision is driven by concerns over illegal outflow of domestic funds, money laundering, and encouraging speculative behavior.

ChainCatcher news, the Financial Services Commission (FSC) of South Korea released the results of the virtual asset business survey for the first half of 2023, surveying 35 reporting companies (26 exchanges/traders and 9 wallets/custodians) to understand the current state of the domestic virtual asset market in South Korea. The total cryptocurrency market capitalization of the surveyed companies is 28.4 trillion won, a significant increase of 46% compared to the second half of 2022. The total operating profit is 227.3 billion won, a staggering increase of 82%, and the number of registered users is 9.5 million, a decrease of 19%.

ChainCatcher News: U.S. House Democratic Leader Maxine Waters expressed her "deep concerns" over PayPal's move to launch a stablecoin this week without a federal regulatory framework.Waters stated in a statement on Wednesday, "PayPal has 435 million customers worldwide, surpassing the total number of online accounts at all major banks. Given PayPal's size and reach, federal oversight and enforcement of its stablecoin operations are crucial to ensuring consumer protection and alleviating financial stability concerns."It is reported that Waters previously served as the chair of the House Financial Services Committee, which is currently led by North Carolina Republican Congressman Patrick T. McHenry. At the end of last month, the committee proposed a regulatory framework for payment stablecoins, called the "Payment Stablecoin Transparency Act." McHenry stated that the bill would protect consumers through federal safeguards while promoting innovation in the U.S.Waters noted that the House Financial Services Committee Democrats have been working on stablecoin regulation for the past 15 months to "create an environment that protects consumers and the economy in cases where companies like PayPal decide to launch their own stablecoins." However, she called the bill "problematic" and added that it would harm consumers.

ChainCatcher news, the Financial Services Commission of Korea has begun the second phase of legislative work, developing a regulatory framework for stablecoins and starting to review the establishment of a virtual asset disclosure system.The Financial Commission has instructed research institutions to review the National Assembly's opinions on virtual assets. Through research services, the Financial Services Commission will examine improvement plans related to the virtual asset regulatory system, including legislative opinions.The reviewed plan must be reported to the National Assembly's Political Affairs Committee's Standing Committee before the implementation of the "Virtual Asset User Protection Act" in July 2024. The second phase of legislative work will be formulated based on the opinions of the Financial Services Commission, which will include regulations related to the issuance of virtual assets and the regulatory framework for types of virtual assets.Through this research service, the Financial Services Commission is reviewing methods to address conflicts of interest arising from virtual asset operators in the issuance and distribution of virtual assets. Additionally, it plans to establish a regulatory framework based on the types of virtual assets, such as stablecoins with fixed prices, as well as security tokens and utility tokens. (Source link)

ChainCatcher news, according to Newsway, the South Korean Financial Services Commission plans to launch a virtual asset bureau (tentative name) in August. Currently, the Financial Commission is in the final discussions with the Ministry of the Interior and Safety regarding the establishment of the new virtual asset bureau. If government approval is obtained, relevant departments will be established through procedures such as the promulgation of a modification bill for the job system, and subsequent personnel arrangements will be completed.The Financial Commission is currently promoting a plan to establish the virtual asset bureau based on the framework of the Virtual Asset Inspection Division under the Financial Intelligence Unit (FIU).It is reported that the Virtual Asset Inspection Division is a temporary institution established according to the revised Specific Financial Information Act (Special Financial Transactions Act) in 2021, and its operational period (until September 2023) is also approaching. (Source link)

ChainCatcher news, the Financial Services Commission of South Korea has released a draft revision of the "Code of Conduct for Public Officials," which requires employees involved in virtual asset responsibilities to refrain from using undisclosed information for investment purposes while performing their duties, and mandates internal employees to report detailed information regarding their holdings of virtual assets.Additionally, it clarifies that the reporting subjects include current public officials engaged in responsibilities related to virtual assets and employees who have engaged in such responsibilities within the last six months. These responsibilities include formulating and implementing policies or regulations related to virtual assets, investigating and reviewing criminal cases related to virtual assets, managing and supervising cryptocurrency exchanges, and supporting and managing the development of virtual asset technologies. A new declaration form has also been established for reporting the types of virtual assets held, acquisition dates, quantities, amounts, and other relevant information. (Source link)

ChainCatcher news, the South Korean Financial Services Commission is conducting a comprehensive investigation into the allegations of fraud, embezzlement, and breach of trust against the South Korean crypto financial company Delio, which suspended deposits and withdrawals on June 14.Currently, the Financial Intelligence Unit (FIU) of the Financial Services Commission has obtained Delio's virtual asset operations and financial data. (Source link)

According to ChainCatcher news, South Korean media Hankyung reported that regarding the statement from South Korean crypto financial company Delio about being informed by regulatory authorities that Haru Invest will file for bankruptcy, the Financial Information Analysis Institute (FIU) of the South Korean Financial Services Commission responded, "We have not heard that Haru Invest is about to file for bankruptcy. Since Haru Invest is an unreported operating company, we have not had any contact with them. The related disputes seem to be an issue that should be handled by the investigative authorities for criminal penalties." (source link)

ChainCatcher news, according to the Korea Herald, the Bank of Korea has the authority to investigate virtual asset operators, and the Financial Services Commission of Korea has expressed support to the National Assembly. According to sources from the National Assembly's Political Affairs Committee, the Bank of Korea is seeking to clarify its right to request data in the "Virtual Assets Act." The National Assembly is collecting government opinions ahead of the next legislative subcommittee meeting of the Political Affairs Committee, and the Financial Services Commission announced it will promote this plan. The Financial Services Commission plans to formally express this position at the first subcommittee meeting of the bill on the 25th. (source link)

ChainCatcher news, according to Beincrypto, U.S. House Financial Services Committee Chairman Patrick McHenry announced today that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler will attend the House Digital Assets Subcommittee meeting on April 18. This oversight hearing will seek to clarify Gensler's rule-making and regulatory approach to digital assets.McHenry stated, "This will be our first oversight hearing of the SEC. In terms of policy, this will be a serious approach to developing regulations in the digital asset space."It is reported that McHenry established the Digital Assets Subcommittee in January 2023 to help bridge the structural gap in the House Financial Services Committee's approach to addressing cryptocurrency issues. The U.S. House Financial Services Committee is responsible for overseeing the entire financial services industry, including securities, banking, and crypto assets. (source link)