The FSC intends to address existing gaps in laws governing local companies dealing with digital assets. The proposed amendments state that the new heads of South Korean crypto companies will need approval from the FSC before they can begin their duties.
For these proposed amendments to take effect, they will need to undergo review by the Ministry of Internal Affairs and Legislation of the Republic of Korea, followed by a voting process by the FSC. It is expected that the amendments will be enforced by the end of March, granting the FSC more authority over crypto companies operating in the country.
One notable change would allow the FSC to suspend the licenses of crypto companies if they are under investigation by local or international law enforcement agencies, or if cases are filed against their employees. The FSC is currently accepting public comments on the proposed amendments until March 4.
Earlier this year, the FSC proposed changes to lending laws to prohibit the use of credit cards on foreign platforms for purchasing cryptocurrencies. Additionally, South Korean authorities have been discussing the possibility of abolishing the tax on crypto assets, with a new tax regime potentially taking effect in 2025.
In a recent announcement, the FSC clarified that the approval of Bitcoin exchange-traded funds (ETFs) in the US would not lead to the lifting of the current ban on the creation of these investment products in South Korea.