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South Korea’s FSC to Fast-Track Digital Asset Framework Act, Review Sandbox Tests
Summary
- South Korea’s Financial Services Commission said it will move as quickly as possible on the Digital Asset Framework Act, including provisions covering stablecoins and other digital assets.
- The regulator said it is also reviewing whether related financial laws, including the Electronic Financial Transactions Act, need to be amended in light of stablecoin circulation and their use in payments and settlements.
- It also said it will review the possibility of using a regulatory sandbox, alongside establishing licensing requirements for digital asset businesses as well as user protection, disclosure and liability frameworks.
Forecast Trend Report by Period
South Korea’s Financial Services Commission said it will move as quickly as possible to advance legislation for a Digital Asset Framework Act covering stablecoins and other digital assets.
Edaily reported on November 2 that Seo Na-yoon, head of the FSC’s virtual asset division, made the remarks at a forum held at the National Assembly.
“We will push ahead as quickly as possible so as to reduce the cost of legislative delays,” Seo said.
The FSC is also reviewing whether related financial laws, including the Electronic Financial Transactions Act, need to be amended in light of stablecoin circulation and their use in payments and settlements.
Seo said that if digital asset businesses are regulated as a separate industry category, their business scope could broaden. In that case, authorities would also need to establish licensing requirements, user protection rules, disclosure standards and liability frameworks.
The regulator also left open the possibility of using a regulatory sandbox. Once discussions at the National Assembly begin in earnest, the FSC will review ways to test some systems more quickly, Seo said.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.