- The Financial Services Commission (FSC) in South Korea has proposed amendments to the virtual asset service provider (VASP) reporting requirements.
- The amendments aim to give the FSC the authority to screen executives joining crypto companies and require companies to report changes in personnel to the financial regulator.
- These changes would prevent executives from starting their jobs until the FSC approves the personnel change report.
- The proposed amendment is expected to go into effect by the end of March 2024, following various procedures and reviews.
Proposed Amendments to VASP Reporting Requirements
The Financial Services Commission (FSC) in South Korea has proposed amendments to the virtual asset service provider (VASP) reporting requirements. The changes would grant the FSC the power to evaluate and approve new executives joining crypto companies. This would also require crypto firms to report any changes in personnel to the financial regulator. As a result, executives would not be able to begin their roles until the FSC gives their approval.
Expected Timeline for Implementation
According to local news outlet Money Today, the proposed amendment is anticipated to go into effect by the end of March 2024. Prior to implementation, the amendment will need to undergo various procedures, including a review from the Ministry of Government Legislation and a resolution by the FSC. Once the amendment is approved, it will apply to VASP renewal reports submitted in the second half of 2024.
The proposed amendments to South Korea’s VASP reporting requirements highlight the country’s efforts to enhance regulatory oversight in the crypto industry. By granting the FSC the authority to screen executives and approve personnel changes, the government aims to reduce potential risks and ensure the integrity of the sector. This move reflects the growing recognition of cryptocurrencies and the need for stronger regulations to protect investors. It will be interesting to see how these changes impact South Korea’s crypto market and whether other countries follow suit in implementing similar measures.