ChainCatcher news, South Korean financial regulators have banned the issuance of cryptocurrency ETFs for spot and futures products, while also rejecting funds that invest in crypto companies, including exchanges.A head of an asset management company stated that they have been preparing to launch a fund investing in virtual asset companies since the end of last year, but have yet to receive approval from local regulators.Meanwhile, an official from the FSS acknowledged the growing demand for Bitcoin investment but stated that regulatory measures would not be relaxed unless there is a change in the government's current policies.

ChainCatcher news, according to SBS Biz, the Financial Supervisory Service (FSS) of South Korea will strengthen its cryptocurrency monitoring system based on the "Virtual Asset User Protection Act." The FSS will improve its methods for collecting and processing cryptocurrency data and establish its own standards for identifying suspicious transactions. It also plans to develop standards for monitoring price fluctuations and spikes in trading volume.In addition, the regulatory agency will enhance its management of data received from overseas cryptocurrency exchanges, including transaction records and policy actions. The agency has allocated approximately 150 million won (108,000 USD) for these upgrades, with the goal of completing them by the first quarter of next year.

ChainCatcher news, according to The Block, the South Korean Financial Services Commission (FSC) recently stated that it will reassess the ban on spot cryptocurrency ETFs and institutional accounts trading on cryptocurrency exchanges. This news marks a significant shift in the regulator's attitude towards digital assets.It is reported that the newly established cryptocurrency committee of the FSC will review the current ban. Previously, South Korean lawmakers have been calling for a change, with both the ruling Democratic Party and the opposition promising to approve local spot Bitcoin ETFs during the elections earlier this year. Since 2018, institutional investors in South Korea have effectively been prohibited from opening trading accounts on cryptocurrency exchanges. This policy adjustment could open new avenues for institutional investors to participate in the cryptocurrency market.Meanwhile, FSC Chairman Kim Byung-hwan stated that an investigation into the monopoly structure of South Korean digital asset exchanges will be conducted. Data shows that among the five fully licensed exchanges in South Korea, Upbit processed over $1.17 billion in trading volume in the past 24 hours, accounting for over 61% of the market share. In March of this year, its monthly average market share once soared to 80%. Democratic Party lawmaker Lee Kang-il also expressed concerns about the financial relationship between Upbit and its partner bank K-bank. He pointed out that Upbit's deposits account for 20% of K-bank's total deposits, warning that if the partnership between the two is disrupted, it could trigger a risk of a bank run.

ChainCatcher news, according to Decrypt, South Korean financial regulators have issued a stern warning, stating that a life sentence will be imposed for cryptocurrency fraud cases that profit over $4 million (approximately 5 billion won). This warning was issued following the enactment of the South Korean "Virtual Asset User Protection Act" in July 2024, which aims to prevent cryptocurrency crimes, partly inspired by the events involving Terra/Luna founder Do Kwon and the collapse of the FTX exchange.In addition, the new law stipulates other penalties, including fines of 3 to 5 times the illegal profits, as well as a maximum of one year of imprisonment.

ChainCatcher news, the Financial Intelligence Unit (FIU) of the South Korean Financial Services Commission has approved the registration of virtual asset service providers (VASPs) for the first time in a year. The approved entities include virtual asset infrastructure company DSRV and crypto asset custody institution BDACS. DSRV submitted its registration application in October 2023 and received approval about a year later, while BDACS submitted its application in February 2024 and received approval about six months later.

ChainCatcher news, according to South Korean financial authorities, the Financial Services Commission (FSC) will propose amendments to the enforcement decree and notification of the Act on Reporting and Using Specified Financial Transaction Information by the end of this month at the earliest, and by early next month at the latest, which includes the standards for banks to issue real-name accounts.The amendments include standards for banks to assess the money laundering risks of virtual asset operators and whether virtual asset operators comply with laws and regulations. In addition, virtual asset operators must also comply with the Virtual Asset User Protection Act, which will take effect in July.

ChainCatcher news, according to hankyung, the head of the Digital Asset Research Group at the Financial Supervisory Service of Korea, Ahn Byeong-nam, stated today at a seminar held at the Seoul Council that guidelines are being developed regarding the standards for cryptocurrency issuance, circulation, and listing.He mentioned that he has been collaborating with exchanges for nearly six months and is close to completion.

ChainCatcher news, according to Edaily, the Financial Supervisory Service of South Korea is seeking to establish a new organization dedicated to the supervision, inspection, and investigation of virtual assets. The newly formed investigation team will have the authority to investigate "market manipulation" of virtual assets. In addition to inspecting virtual asset operators, starting from July next year, there will also be a serious investigation into improper trading behaviors such as market manipulation and the use of undisclosed information. The scale of the newly established department is expected to be determined next month after the government finalizes the budget management guidelines for public enterprises and quasi-government organizations.

ChainCatcher news, according to Decenter citing informed sources, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) of South Korea has suggested the dismissal of Delio CEO Jung Sang-ho (phonetic) through a sanctions announcement. Previously, the FIU also imposed a three-month business suspension on Delio and fined it 1.896 billion won.Delio is preparing to file an administrative lawsuit regarding this matter. Delio CEO Jung Sang-ho stated, "The sanctions from the financial intelligence agency leave a lot of room for unreasonable legal interpretations and arbitrary applications, and such actions by the financial authorities could stifle the domestic virtual asset industry."

ChainCatcher news, according to the Chosun Ilbo, the Financial Intelligence Unit (FIU) under the Financial Services Commission of South Korea plans to conduct a comprehensive inspection of virtual asset operators this month, targeting about 20 virtual asset exchanges including FOBLGATE, GDAC, and Flybit.Industry insiders stated that this inspection will focus on whether the exchanges are involved in money laundering using virtual assets. (Source link)