South Korea plans to finalize crypto regulations by the second half of 2025.
Discussions are ongoing to bring laws that will bring investors, exchanges, and the general crypto market under one fold.
South Korea is actively looking for reasonable inputs as it seeks to finalize its crypto regulation framework. To this end, it has officially launched discussions to hasten the process and ensure that it comes up with a draft regulation within the second half of 2025. That is, according to fresh reports from local media.
The news comes on the heels of a recent meeting that was held by the country’s Financial Services Commission (FSC) on Wednesday. According to a report by South Korean news outlet Edaily, the commission met to discuss and outline the major target areas for the upcoming bill.
South Korea to Make Investor Protection and Clear Crypto Regulation a Priority
For what it’s worth, major economies around the world are fast-tracking their crypto regulatory frameworks. In the opinion of the FSC Vice Chair, Kim So-young, it is not a bad idea that South Korea is seeking to move with the trend. Moreover, developing these regulations quickly, which hopefully will come along with some clarity, also means better protection for investors within the country’s borders.
Notably, it has been a long ride for South Korea on its journey to achieving a full crypto regulatory framework. After passing legislation in 2023, the first stage of the framework came into effect last July. However, that came with stricter requirements, especially for exchanges. Part of those requirements is that service providers should keep at least 80% of user crypto deposits in cold storage separate from their own funds.
While all these previous efforts are also focused on protecting crypto investors, the FSC Vice Chair has reportedly said that the upcoming framework will take a wider approach. This means that the new framework will seek to accommodate not only service providers but also crypto users and the crypto market in general.
Edaily reports that the Wednesday meeting saw the FSC discussing a wide range of topics. That is, from stablecoin regulations to increasing transparency in new listings of cryptocurrencies on exchanges. The commission also spoke extensively on how to enforce the same disclosure required of companies in traditional finance on crypto firms as well.
Why Now?
It might be worth noting that South Korea has one of the largest crypto markets in the world. For instance, its local exchange, Upbit, ranked as the world’s third-largest centralized exchange by trading volume just last month.
So, it might be understandable how the government has come to terms with the economic importance of the sector. In line with this realization, regulation might be the only way that the South Korean government sees as a means to solidify its position in the global crypto space while also trying to curb potential risks for investors.
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