South Korea is speeding up its legislative efforts to regulate virtual asset accounts for corporations and stablecoins. Financial authorities have announced their commitment to finalizing policies in the coming months.
At a monthly press conference on January 22, Financial Services Commission Chairman Kim Byung-hwan revealed plans to announce the authorities’ stance on corporate virtual asset accounts soon.
U.S. Influence on South Korea’s Crypto Policies
South Korea’s regulators are closely monitoring international developments, especially in the U.S., where the Trump administration is taking proactive steps toward crypto regulation. Chairman Kim noted that global trends significantly influence South Korea’s pace in institutionalizing virtual assets.
He emphasized the need to align with these developments while ensuring both industry growth and investor protection.
Related: South Korea Targets VASP Accountability With New Proposal
Corporate Accounts and Stablecoin Oversight
Despite a recent omission of corporate account updates in a press release following the Virtual Asset Committee meeting, Chairman Kim clarified that the matter remains a priority. The FSC plans to finalize its position and provide updates soon.
Chairman Kim also acknowledged that the first phase of legislation, “Stage 1,” lacked provisions for stablecoin regulation. To address this, the FSC is advancing to “Stage 2,” which focuses on the issuance and listing of stablecoins and other virtual assets.
Ongoing Review of Upbit Sanctions
In a separate discussion, Chairman Kim addressed the Financial Intelligence Unit’s (FIU) review of sanctions against Upbit, South Korea’s leading cryptocurrency exchange. The FIU found that Upbit violated Know Your Customer (KYC) regulations, resulting in unreported transactions involving virtual assets.
Related: South Korea Regulators Clamp Down on Upbit, 700K KYC Violations Found
While the review is ongoing, Kim assured the public that the authorities are prioritizing a swift resolution to minimize potential disruptions for Upbit’s extensive user base. He stressed the importance of a thorough review to ensure fair outcomes for all stakeholders.
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