South Korea Regulators Near New Crypto Oversight Framework

South Korea’s Financial Supervisory Service (FSS) and Financial Intelligence Unit (FIU) are nearing a crypto oversight structure, FSS chief 李贞镇 told lawmakers Oct. 19, amid concerns about exchange controls and divided authority.

李贞镇 said the FSS is working with the FIU on the framework. He said the next phase of the proposed Digital Asset Basic Act is intended to reinforce crypto supervision. He also pointed to internal-control failures at Bithumb and other exchanges.

Lawmaker 李康一 said oversight responsibilities are divided among the Financial Services Commission (FSC), the FSS, the FIU and the Bank of Korea. He also cited numerous suspected violations at exchanges.