South Korea has officially initiated discussions to develop the second phase of its cryptocurrency regulatory framework, with plans to draft the legislation by the second half of this year. The Financial Services Commission (FSC) of South Korea convened a meeting on Wednesday to identify the key areas that the upcoming bill will address, as reported by the news outlet Edaily . Protecting Investors During the meeting, FSC Vice Chairman Kim So-Young highlighted that major global economies are speeding up the development of crypto regulations to protect investors and reduce regulatory uncertainty. The initial crypto regulatory framework came into effect in July of last year, after being passed the year before. This framework focused on investor protection by imposing stricter requirements on exchanges, such as mandating that service providers store at least 80% of customer crypto deposits in cold storage, separate to their own assets. A Comprehensive Approach According to the Vice Chair of the FSC, the next phase of regulatory measures should take a thorough and structured approach that addresses service providers, crypto users, and the broader crypto market. During the meeting, several topics were discussed, including improving transparency in the listing of new cryptocurrencies on exchanges and applying the same disclosure requirements for crypto entities as those for companies in traditional finance. The meeting also covered stablecoin regulation, with authorities examining global practices regarding reserve asset management for issuers and user redemption rights.
