South Korea Takes Step Closer to Regulating Crypto Market with Legislative Approval
South Korea's National Assembly has approved a legislative act to regulate the country's cryptocurrency market in its first phase of review. The bill defines virtual assets as electronic representations of economic values that can be traded or transferred electronically, excluding central bank digital currency and other digital assets of the Bank of Korea. The Financial Services Commission will have the authority to monitor and investigate financial activities related to digital assets, emphasizing consumer protection and reporting on regulatory compliance. Additionally, cryptocurrency providers will have to separately store user assets and deposits and provide insurance and provisions in case of hacking or system failures. The passage of the bill is expected by the end of 2023.