DPK to tighten oversight of virtual assets…pushes to set up a 'Market Surveillance Authority'

The Democratic Party of Korea is pushing to establish a "Virtual Asset Market Surveillance Authority" to strengthen the monitoring system for the virtual-asset market.

According to political circles on the 1st, the National Assembly's Political Affairs Committee on the 31st of last month tabled for review a partial amendment to the "Act on the Protection of Virtual Asset Users, etc.," sponsored by DPK lawmaker Kim Nam-geun. The core of the amendment is the creation of a Virtual Asset Market Surveillance Authority to manage the virtual-asset market in a systematic manner.

Under the bill, domestic virtual-asset exchanges would be required to join the authority. The bill also stipulates the legal basis for collecting membership fees and expenses to enable the authority to carry out its duties.

The authority's main functions would include monitoring and reviewing abnormal virtual-asset transactions and auditing member firms. The bill also defines as the authority's remit cross-market coordinated surveillance and user-protection measures, the establishment of market-surveillance rules, and decisions on disciplinary actions for members and employees. The authority would also have investigative and auditing powers, including requesting document submissions from member firms, calling relevant parties to appear and provide statements, and asking the Financial Services Commission to investigate in cases of non-cooperation with audits.

The schedule for tabling and deliberating the amendment at the bill subcommittee has reportedly not yet been finalized. A DPK official said, "(The amendment) is expected to be discussed together with the Basic Act on Digital Assets," adding, "Unless enactment of the Basic Act is significantly delayed, there is a high likelihood they will be bundled."