South Korea Initiates Crypto Regulation Discussions With ASEAN

South Korean regulators engaged in discussions with officials representing ASEAN, the Association of Southeast Asian Nations, and the OECD regarding cryptocurrency policy in Seoul on March 18th, 2024. According to Yonhap, the event was organized by the Seoul-based Financial Services Commission (FSC), the primary financial regulatory body in South Korea.

The international conference aimed to share the progress of digital finance policies in ASEAN countries. The participants expressed their desire to address risks associated with cryptocurrencies and related issues. The regulatory meeting was part of an event titled South Korea-OECD Roundtable: On Digital Finance in ASEAN.

An Important Meeting

Various representatives by the Korea Institute of Finance also participated in the discussions. The discussions on March 18th focused on presentations and discussions related to topics concerning central bank digital currencies and crypto assets.

Joining South Korean regulators were representatives by financial regulatory authorities, central bank officials, and other major financial institution officials by Asia and OECD member countries. The FSC announced that the parties agreed to exchange findings on global trends and share opinions on digital finance. On March 19th, the participants convened to exchange views on artificial intelligence in the financial sector.

FSC Vice Chairman Speaks

In his opening address, Kim So-young, Vice Chairman of the FSC, highlighted the positive impact of financial innovation through digital technology, including increased productivity in the financial industry. He emphasized the importance of establishing an appropriate regulatory framework to manage the risks associated with new technologies and protect consumers.

Kim urged South Korean regulators, along with their counterparts by ASEAN and the OECD, to proactively address the challenges posed by digital finance and cryptocurrency markets. He also emphasized the expanding international cooperation in the financial industry and called for sharing the latest financial trends with international organizations and major global countries, including ASEAN nations.

Kim concluded that South Korea and ASEAN nations should enhance cooperation to ensure alignment with the international regulatory framework. The direct investment by South Korea flowing into China last year fell the most in data dating back more than three decades, indicating weakening economic ties.