South Korea proposes stricter screening of crypto executives

Feb. 5, 2024

By Assad Jafri

The South Korean Financial Services Commission (FSC) has announced significant legislative amendments aimed at tightening regulations surrounding virtual asset business operators, specifically focusing on the accountability and duties of crypto executives.

The partial amendment to the Enforcement Decree of the Act on Reporting and Use of Specific Financial Transaction Information, under Finance Commission Notice No. 2024-30, introduces measures to ensure greater compliance and oversight in the rapidly evolving virtual asset sector.

Screening executives

Central to the proposed changes is the introduction of stringent requirements for changes in the management of virtual asset businesses.

Under the new regulations, any alteration in the representative or executive positions within such businesses must be reported and approved before the new appointees can officially assume their roles.

This measure is designed to prevent disruptions and maintain a steady hand at the helm of these often volatile and technologically advanced entities. The government aims to foster a more stable and trustworthy environment for businesses and consumers by holding leaders within the virtual asset industry to higher accountability standards.

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