South Korea Advances Cryptocurrency Regulation Efforts

According to Odaily, South Korea's Financial Services Commission convened a meeting on Wednesday to outline key objectives of an upcoming legislative proposal. Kim So-young, Vice Chairman of the Financial Supervisory Commission, highlighted that major global economies are expediting the establishment of cryptocurrency regulations to enhance investor protection and eliminate regulatory uncertainties. South Korea's first cryptocurrency regulatory framework came into effect in July of last year, following its legislative approval a year earlier. This framework aims to safeguard cryptocurrency investors by imposing stricter requirements on exchanges. For instance, service providers are mandated to store at least 80% of user cryptocurrency deposits in cold wallets, separate from their own funds. The meeting also addressed topics such as increasing transparency in the listing of new cryptocurrencies on exchanges and enforcing disclosure requirements for crypto entities similar to those for traditional financial companies. Regarding stablecoin regulation, authorities reviewed global practices concerning the management of reserve assets by issuers and the redemption rights of users.