The Financial Services Commission of Korea (FSC) on Monday proposed new amendments that would require new executives at cryptocurrency companies to obtain regulatory approval before taking up their duties. This would potentially give the financial watchdog more powers over the country’s cryptocurrency sector.
FSC said It announced plans to “improve” problems with the current law that oversees the local cryptocurrency industry. If the bill is enacted, new executives at Korean cryptocurrency companies will not be able to start work until the FSC approves their applications for personnel changes. This is a requirement that is not currently detailed in national laws regarding the use and reporting of financial transaction information.
The amendment is scheduled to be enacted at the end of March after revision by the Ministry of Government Legislation and a vote by the Financial Supervisory Commission. today’s money.
The proposed amendments also seek to give the FSC the power to suspend review of a cryptocurrency company’s license registration if the company or its members are under investigation by local or international regulators.
Binance last week It is said that he said In order to address FSC’s concerns, the company announced that it is exploring ways to reduce its stake in Gopax, a domestic exchange where it is currently the largest shareholder. The FSC has delayed approving Gopax’s restructuring since the Binance acquisition, which could potentially raise Binance’s legal issues in the United States.
The FSC is requesting public feedback on the proposed amendments by March 4. Regulators did not immediately respond to The Block’s request for further comment.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.