South Korea's FSC will Check the Heads of Crypto Companies before They Take Office
The South Korean Financial Services Commission (FSC) has proposed amendments according to which new heads of crypto companies must receive regulatory approval before taking up their duties.
The FSC said it intends to fill in the gaps in existing laws controlling local companies that work with digital assets. According to the agency's proposal, the new heads of South Korean crypto companies will not be able to start work until the FSC approves these personnel changes.
The proposed amendments must be reviewed by the Ministry of Internal Affairs and Legislation of the Republic of Korea, as well as the voting process in the FSC. They are expected to come into force at the end of March. This will expand the powers of the financial regulator over industry companies in the country.
In particular, the FSC will be able to suspend licenses for crypto companies if local or international law enforcement agencies investigate the activities of these companies or open cases against their employees. The FSC is ready to accept public comments on the proposed amendments until March 4.
At the beginning of the year, the FSC proposed to amend the law on lending to prohibit the purchase of cryptocurrencies using credit cards on foreign platforms. Later, the South Korean authorities began discussing the possibility of abolishing the tax on crypto assets. The new tax regime may come into force in 2025.
