South Korea Advances Virtual Asset Disclosure Regulations

According to Odaily, South Korean financial authorities are advancing self-regulatory measures for virtual asset disclosures this year. The second phase of legislation aimed at regulating the disclosure and issuance of virtual assets is currently under discussion. The policy focuses on self-regulation to minimize regulatory gaps. Additionally, the authorities plan to consider international regulatory examples, including those related to the development of the virtual asset industry, to support the formulation of the second phase of the legislation. The Financial Supervisory Service announced in its 2025 work plan, released on the 10th, that it will establish a self-regulatory mechanism for virtual asset disclosures. The Virtual Asset Act, which took effect in July last year, emphasizes investor protection and prohibits unfair trading practices. The second phase of this act, still under discussion, includes a market discipline system for virtual asset disclosure and issuance. Financial authorities aim to first establish a self-regulatory mechanism, allowing companies to voluntarily disclose information to prevent investor losses due to regulatory loopholes. They also plan to develop guidelines for sales activities, including advertising and marketing. The Financial Supervisory Service is actively supporting the second phase of legislation being promoted by the National Assembly and the government. It will study overseas regulatory systems that include innovative content from the virtual asset industry and incorporate these insights into the legislation.