South Korea to Draft Crypto Regulations Considering Innovation

On Dec 14, the vice chairman of South Korea's Financial Supervisory Service said that authorities will consider new measures in the next phase of cryptocurrency regulation. Kim So-young, vice chairman of the Financial Services Commission, said at a digital currency conference in Seoul, "The Act must strike a balance between protecting investors and technology."

This event was held jointly by the government, the central bank, and the International Monetary Fund (IMF) after the Bank of Korea launched the Central Bank digital currency (CBDC) development project last October.

Korea enacted a virtual asset law this year to regulate and regulate the cryptocurrency market to protect investors. It will be effective from July 2024.

The move came after a series of cryptocurrency troubles in recent years, including an alleged fraud by South Korean crypto entrepreneur Do Kwon that heightened public and regulator concerns over crypto markets.