FSS Chief Urges Crypto Exchange CEOs to Strengthen Internal Controls

Lee Chan-jin, governor of South Korea’s Financial Supervisory Service, met with chief executives from the country’s virtual-asset industry and urged them to strengthen internal controls.

Lee held a meeting on July 2 with the CEOs of 15 major virtual-asset operators, including Bithumb and Dunamu, to discuss ways to bolster internal controls and market-surveillance functions, according to Yonhap News and other local media.

At the meeting, Lee said South Korea’s virtual-asset industry is broadening, aided by the spread of stablecoins. He called on companies to build companywide internal-control systems to help restore market trust and support the industry’s transition into the regulated mainstream.

“The foundation of market trust is a control system that operates routinely within a company, even before strong public regulation,” Lee said. He asked executives to pay close attention to establishing and operating enterprisewide internal-control systems to support sustainable development and solid growth.

Lee also told exchanges to proactively strengthen their market-surveillance capabilities so they can properly carry out their role in preventing and detecting unfair trading.

He also emphasized the need to respond to regulatory changes. The remarks were seen as referring to discussions in the National Assembly on legislation including the proposed Digital Asset Basic Act.

Lee urged companies to closely monitor revisions to laws and regulations and prepare thoroughly to avoid any gaps in compliance. He added that launching high-risk products aimed only at short-term performance, staging sensational promotional events, making delayed disclosures with insufficient information, and shifting harm onto good-faith users would ultimately erode user trust.