Crypto News- South Korea’s Financial Services Commission (FSC) has unveiled proposed amendments aimed at bolstering regulatory control over the local crypto sector. In a Monday announcement, the FSC outlined plans to mandate regulatory approval for new executives joining cryptocurrency companies. The move is seen as an effort to address current shortcomings in the legislation governing the country’s crypto industry.
According to the proposal, prospective executives in South Korean crypto firms would be required to obtain FSC approval before commencing their roles. This procedural change is not currently outlined in the country’s existing laws on financial transaction information use and reporting.
Strengthening Regulatory Measures: South Korea Suggests Vetting Process for Cryptocurrency Executives
The amendments are poised for revision by the Ministry of Government Legislation, followed by a voting process by the FSC. If approved, the changes are slated to take effect by the end of March, as reported by local news outlet Money Today.
Additionally, the proposed amendments grant the FSC the power to suspend the review of a crypto company’s license registration if the firm or its members are under investigation by local or international regulators. The FSC would be authorized to revoke a company’s registration if it violates the Act on Corporate Governance of Financial Companies, especially in cases where executives are improperly elected.
Executive Approval: South Korea Proposes Regulatory Vetting for Crypto Company Leaders
Notably, the amendments seek to impose restrictions on individuals with a history of criminal convictions, preventing them from assuming executive roles at crypto firms. Those sentenced to fines or more severe penalties and who have not completed five years since serving their sentence would be barred from becoming executives.
Recent reports suggest that Binance is exploring options to reduce its stake in the South Korean exchange Gopax, responding to concerns raised by the FSC. The regulator has delayed approving Gopax’s structural changes following Binance’s acquisition, potentially due to the ongoing legal challenges faced by Binance in the United States.