South Korea's financial watchdog wants to 'quickly' review crypto legislation: Report

The chair of South Korea’s Financial Services Commission said the regulator plans to expedite its review of 13 bills pending in the country’s National Assembly related to digital assets.

According to a Thursday report from South Korean news outlet Edaily, Financial Services Commission chair Kim Joo-hyun said a task force consisting of private experts and government ministries will “quickly” review proposed legislation on cryptocurrencies. Kim, addressing the Digital Assets Committee, added that the financial watchdog would “make institutional supplements that will take a balanced approach to blockchain development, investor protection and market stability.”

“Even before legislation, we will introduce self-regulation efforts for the industry and do our best to protect investors,” said Kim. “Efforts are being made internationally to stabilize the education system and reduce the risk of consumer protection without impeding technological development.”

The financial watchdog chair’s comments followed reports South Korea planned to establish a comprehensive framework on cryptocurrencies by 2024 called the Digital Asset Basic Act. Following the crash of Terra (LUNA) — now renamed Terra Classic (LUNC) — many reports suggested South Korean authorities had ramped up investigations and enforcement efforts, including a plan to launch the Digital Assets Committee aimed at providing investor protection and listing criteria. Prosecutors in South Korea also reportedly raided seven crypto exchanges in July.

Under South Korea President Yoon Suk-yeol, who took office in May, the country has taken steps toward becoming a more crypto-friendly regulatory environment amid a market downturn and the controversy surrounding the collapse of Terra. Do Kwon, the co-founder of Terraform Labs, has reportedly faced legal scrutiny and calls to attend a parliamentary hearing on the matter.