ChainCatcher news, according to Decenter, the Financial Intelligence Unit (FIU) of the South Korean Financial Services Commission has announced sanctions against Delio, including a three-month suspension of all operations, a fine of 1.896 billion won (approximately 1.44 million USD), and the dismissal of an executive.The FIU stated that Delio transferred customers' virtual assets 171 times for unreported foreign virtual asset operators and supported unreported virtual asset operators in storing virtual assets. Additionally, Delio failed to conduct anti-money laundering risk assessments before offering new products and services, violating customer identification obligations.

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 Political Affairs Committee of the National Assembly of Korea has passed the "Virtual Asset User Protection Act" in a plenary meeting held today. The focus of this bill is to protect virtual asset users and limit unfair trading, making it the country's first domestic legislation aimed at virtual assets. (Source link)

ChainCatcher news, according to Decenter, the Digital Asset Exchange Association (DAXA) in South Korea has announced the appointment of lawyer Si-mok Kim from Yulchon LLC and Lee Min-seop, head of the anti-money laundering group at Kim & Chang, as members of the advisory committee.Previously, DAXA disclosed the status and plans for self-regulatory implementation, revealing that it has established an anti-money laundering department, with Upbit responsible for the anti-money laundering subcommittee. (source link)

ChainCatcher news, the first bill review subcommittee of the Korean National Assembly, held on the morning of February 27, failed to discuss the Basic Law on Digital Assets. The meeting presented 17 bills related to virtual assets, but the discussion was postponed due to amendments to the Capital Markets Act. Currently, the legislative proposals in the National Assembly regarding "restoring fairness in the digital asset market and creating a safe trading environment" and "regulating unfair trading in virtual assets" have not been discussed. Both bills include:(1) Offshore regulations applicable to offshore activities; (2) Prohibition of unfair trading practices, such as using undisclosed material information, market manipulation, and unfair trading practices; (3) Protecting investors and regulating unfair practices by granting the Financial Services Commission the authority to oversee the virtual asset market, conduct inspections, and enforce penalties. It is reported that Korean politicians had expressed intentions to establish a Basic Law on Digital Assets within last year, but discussions have been postponed multiple times. (TechM)

ChainCatcher news, the Financial Services Commission (FSC) of South Korea officially announced the guidelines for Security Token Offerings (STO) on Monday. Examples of digital assets that may be classified as securities include those that provide shares of corporate operations, dividends, or residual rights, or allow issuers to allocate profits generated by the business to investors' assets. Cryptocurrencies or other digital assets with characteristics of securities will be regulated under the Capital Markets Act, while those outside that definition will be regulated under the digital asset regulations currently being prepared.The FSC stated that the class security characteristics of cryptocurrencies and other digital assets will be determined on a case-by-case basis. Issuers and brokers, such as cryptocurrency exchanges, will be responsible for conducting such assessments in accordance with regulations. The new guidelines aim to prepare the financial sector for the upcoming legalization of security token issuance and distribution, allowing entities to issue such tokens directly without financial institutions, and planning to establish an over-the-counter market for these tokens.The FSC will submit a proposal in the first half of 2023 to incorporate these updates into existing financial laws. In addition, South Korea's largest securities firm, Shinhan Securities, announced on Monday that it has formed a so-called "STO Alliance" to expand the security token ecosystem. (forkast)