Refer Report

The Financial Services Commission emphasized that it will thoroughly monitor unfair trade practices based on the ‘Virtual Asset User Protection Act’ that was implemented last July.

Kim Sung-jin, director of the Virtual Asset Division at the Financial Services Commission, announced this policy at a symposium with Lee Hae-boong, head of the Upbit Investor Protection Center, and Lee Joo-hyun, head of Bithumb’s Strategic Legal Affairs Office, on the topic of “Investor Protection and Fostering the Virtual Asset Industry” at the Blooming Beat Conference of the “Korea Investment Week (KIW) 2024” held at the Conrad Grand Ballroom in Yeouido, Seoul on the 12th.

Manager Kim explained, “The core of the Virtual Asset User Protection Act is the system to restrict unfair trade practices and detect abnormal transactions,” and “Once results are achieved, users will be able to feel it in the market.” He added, “Unlike the stock market, virtual assets are traded on individual exchanges, so we will thoroughly continue to monitor the market through on-site inspections of exchanges as well as cooperation with exchanges.”

Director Lee Hae-boong also said, “Various methods are emerging, such as zero-day attacks that target vulnerabilities in investors and platforms,” and “DAXA (Digital Asset Exchange Association), including Upbit, is working with financial authorities to detect virtual asset phishing and abnormal transaction patterns and establish a public-private joint cooperation system for virtual assets.”

They also emphasized that the second stage of virtual asset legislation should be promoted in order to restore investor confidence. Director Lee Ju-hyeon emphasized, “The Virtual Asset User Protection Act is significant in that it is the first virtual asset business law (a law that allows for business or operations), but it is not a specific business law like the Capital Market Act.” He added, “The second stage of virtual asset legislation should be promoted quickly in order to grow the industry.”

In addition, the center director mentioned that it is necessary to specify regulations and publish English-language regulatory proposals. He added, “I believe that foreign projects will be able to actively enter the domestic market only when English-language regulatory proposals are distributed along with specific domestic regulations.” In response, Manager Kim said, “We are considering regulations related to market entry and sales through the second stage of legislation,” and “Domestic regulatory agencies will also communicate with international agencies to align with global regulations in terms of accuracy and introduce regulations in a more desirable direction to support market growth.”

Lee Young-min Blooming Beat Reporter 20min@bloomingbit.io

Source: Korean