South Korea is set to establish the Virtual Asset Committee this month, aiming to address key issues within the crypto sector. This advisory body, created under the Financial Services Commission (FSC), is expected to hold its first meeting soon.
Discussion topics will include virtual asset spot exchange-traded funds and corporate investments in virtual assets, among others. The local industry said this is a response to growing calls for a more comprehensive approach to regulating and promoting virtual assets.
Financial authorities are in the midst of completing the appointment of civilian members. The committee will consist of 15 members, including six officials from various government ministries and nine representatives from the private sector.
The chairmanship of the committee will fall under Vice Chairperson Kim So-young of the FSC. One of the big focuses will be the permit of spot ETFs as it is the most demanded request in South Korea. While in the U.S., the Bitcoin and Ethereum spot ETFs are available, they remain unavailable in Korea.
User protection act: Laying the foundation for crypto regulations
This has been frustrating, with some advocating for their introduction during previous legislative sessions. Additionally, the committee will consider allowing corporate entities to open virtual asset accounts, a move that they have previously restricted.
The committee formed after the implementation of the Virtual Asset User Protection Act in July. The Act is the first measure that sets out some of the regulations that the operators are to follow.
However, further legislation, referred to as “stage 2,” will address issues like asset issuance and listing, aiming to bring South Korea’s virtual asset regulations in line with international standards.
The FSC aims to strike a balance between the regulation and fostering the virtual asset market. Going forward, the board will act as the key factor in the process of the industry development.
Related | UAE’s first AED stablecoin nears launch with CBUAE nod
