PiCK
FSC to push for applying Act on the Use and Protection of Credit Information to virtual asset service providers
Summary
- The Financial Services Commission said it is pursuing a plan to incorporate virtual asset service providers into the regulatory framework of the Act on the Use and Protection of Credit Information.
- If the amendment is implemented, virtual asset exchanges and others will transition to an information management system at the level of financial companies, and the level of sanctions is expected to rise.
- Although a one-year grace period currently applies, regulation of virtual asset transaction information is expected to be further strengthened.
The Financial Services Commission (FSC) is pursuing a plan to include virtual asset service providers (VASP), including virtual asset exchanges, in the regulatory framework of the Act on the Use and Protection of Credit Information.
On the 11th, the FSC issued a legislative notice for the "Partial Amendment to the Enforcement Decree of the Act on the Use and Protection of Credit Information," which defines virtual asset transaction information as credit information and incorporates virtual asset service providers as credit information providers and users.
The core of this amendment is to include information related to virtual asset transactions among the data managed under the Act on the Use and Protection of Credit Information to strengthen the protection of users' rights. The FSC explained that "if virtual asset service providers comply with the obligations under the Act on the Use and Protection of Credit Information, the protection of the rights of subjects of credit information will be institutionally guaranteed."
Accordingly, the industry, such as virtual asset exchanges, is expected to be incorporated into an information management system effectively at the level of financial companies. Currently, virtual asset service providers are subject to the Personal Information Protection Act, but if the Act on the Use and Protection of Credit Information applies, procedures for data collection, storage, and use will become stricter, and penalties such as fines or criminal punishment for violations will be increased.
Earlier, the Financial Supervisory Service (FSS) issued a non-action letter on March 24 that temporarily exempted sanctions for virtual asset service providers' violations of the Act on the Use and Protection of Credit Information. This was a measure to defer application for one year, considering the industry's preparation period, after the FSC stated on December 2 last year that "virtual asset transaction information corresponds to credit information and personal credit information."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
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