"Financial regulators to brief National Assembly on virtual-asset mispayments…discussions under way on shoring up制度"

South Korea’s financial authorities plan to report to the National Assembly’s Political Affairs Committee tomorrow on the recent case involving virtual-asset mispayments.

According to industry sources on the 9th, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) plan to provide an overall briefing on the circumstances that led to the mispayments at a virtual-asset exchange, the status of follow-up measures and whether user protection was ensured, targeting lawmakers on the committee on the 10th.

Kang Jun-hyun, the ruling-party floor secretary of the Political Affairs Committee and a lawmaker of the Democratic Party of Korea, said, "We are currently discussing whether to convene a plenary meeting to receive a briefing from the financial authorities on the issue," adding, "If a meeting does not materialize, we are also reviewing an option to continue discussions through a party-level consultation channel."

Earlier, immediately after the mispayment incident at a domestic virtual-asset exchange, the financial authorities held two emergency inspection meetings and said they would consider measures to establish internal control standards for exchanges comparable to those applied to financial institutions. Items under discussion include building a verification framework between ledgers and actual virtual-asset holdings, introducing multi-step confirmation procedures, and setting up control mechanisms to reduce human error.

The authorities said that, separate from any judgment on individual operators in this case, they will inspect the overall management and control framework of exchange systems to prevent similar problems from recurring.