The South Korean financial regulatory agency has issued a legislative notice for the formulation of implementation regulations and regulatory rules related to virtual assets
ChainCatcher news, the Financial Services Commission (FSC) of South Korea has issued a legislative notice regarding the formulation of the "Regulations for the Enforcement of the Virtual Asset User Protection Act" and the "Regulations for the Supervision of the Virtual Asset Industry," both of which detail the legal authorizations.The contents include: First, the addition of objects not applicable to the "Virtual Asset User Protection Act," such as deposit tokens linked to CBDC and NFTs; second, clarification of the user deposit management institutions and their operational methods; 80% of users' virtual assets must be stored in cold wallets; fourth, the establishment of standards for mutual insurance or accumulated reserves to address responsibilities for incidents such as hacking and computer failures; fifth, defining possible points in time for the leakage of undisclosed important information and insider trading based on the characteristics of the virtual asset market; sixth, in principle, arbitrary freezing of users' virtual asset deposits and withdrawals is prohibited, with exceptions allowed for specified circumstances; seventh, the obligation for virtual asset exchanges to monitor abnormal trading and establish a penalty procedure for unfair trading behaviors.It is reported that the formulation of these enforcement and regulatory regulations is expected to be announced legislatively from December 11, 2023, to January 22, 2024, and will come into effect on July 19, 2024, after review by the National Tax Service and other procedures.
