The Financial Services Commission (FSC) of South Korea
is proposing significant changes to its virtual asset service provider (VASP)
reporting requirements, aiming to regulate the employment of executives within
crypto companies.
If approved, the amendment would mandate regulatory
approval for executives joining crypto firms, affecting personnel changes and
VASP license renewals.
The proposed amendment targets crypto executives,
requiring regulatory approval before they can start working in crypto companies.
This move aims to provide the FSC with authority over personnel changes in the
crypto industry.
Under the proposed rules, companies seeking to renew
their VASP licenses would face scrutiny regarding their personnel. The FSC
would gain the power to suspend license reviews if authorities are
investigating the company’s personnel for any reason.
Before the amendment becomes law, the FSC is seeking
public feedback until March 4, 2024. The proposed changes are expected to be
effective by the end of March 2024, following reviews and resolutions by
relevant authorities.
South Korea has been moving towards tighter
regulations in its crypto space. Recent initiatives include legislation
concerning crypto mixers to combat money laundering and measures to restrict
locals from buying crypto with credit cards to prevent illegal outflows and
money laundering.
Expect ongoing changes as this story evolves.
The Financial Services Commission (FSC) of South Korea
is proposing significant changes to its virtual asset service provider (VASP)
reporting requirements, aiming to regulate the employment of executives within
crypto companies.
If approved, the amendment would mandate regulatory
approval for executives joining crypto firms, affecting personnel changes and
VASP license renewals.
The proposed amendment targets crypto executives,
requiring regulatory approval before they can start working in crypto companies.
This move aims to provide the FSC with authority over personnel changes in the
crypto industry.
Under the proposed rules, companies seeking to renew
their VASP licenses would face scrutiny regarding their personnel. The FSC
would gain the power to suspend license reviews if authorities are
investigating the company’s personnel for any reason.
Before the amendment becomes law, the FSC is seeking
public feedback until March 4, 2024. The proposed changes are expected to be
effective by the end of March 2024, following reviews and resolutions…
