FSC "Pushing for phase 2 consolidated legislation including stablecoins… to encompass market conduct regulations"

The Financial Services Commission (FSC) plans to announce the 'Phase 2 Virtual Asset User Protection Act,' which will include provisions related to stablecoins, within the second half of this year (July to December).

According to the industry on the 31st, Kim Dong-hwan, Director General of Digital Finance Policy at the FSC, attended the International Financial Center seminar "Cryptocurrency, A New Paradigm Shift in Finance?" held on the 28th at the YWCA Grand Auditorium in Jung-gu, Seoul, and stated, "The government has been promoting policies centered around two pillars: legislative reform to respond to rapidly changing virtual asset market conditions, and improvement of business practices." He added, "In addition to the existing user protection law currently in force, we are also pushing for a phase 2 consolidated legislation that will comprehensively cover stablecoin regulations, virtual asset business registration requirements, and market conduct regulation."

Kim went on to say, "Along with legislative reform, the government is also promoting improvements in market practices through Asset Committee discussions that can be made without amending relevant laws," and explained, "Practical measures such as permitting corporate market participation and revising transaction support standards to address unlisted or 'zombie coins' are being continuously implemented."

Previously, since July of last year, the government has institutionalized measures such as the segregation of deposits, prohibition of unfair trading, and the granting of supervisory authority through the 'Virtual Asset User Protection Act.' The FSC is planning to prepare a follow-up bill within the second half of this year covering stablecoin regulations, disclosure requirements, and criteria for business operators.