The new supervisory units within the Financial Supervisory Service (FSS) are being formed to meet the requirements of the new law on the protection of users of virtual assets, which will come into force from July 2024.
The supervisory bureau will monitor the operational activities of cryptoasset business operators, as well as conduct regular inspections of market participants for compliance with regulatory requirements. In turn, the Investigation Bureau will prevent systemic failures in South Korea’s crypto market and investigate fraud involving virtual assets.
Earlier, the FSS announced that the agency’s expert team has begun drafting new rules for the supervision and regulation of the crypto market. New standards are proposed for procedures for listing cryptocurrencies on trading platforms, internal controls, issuance and distribution of virtual assets.