The Korea Finance Commission intends to include digital asset hosting in independent operations to regulate and follow the EU regulatory initiative

ON 23 JULY, THE KOREA FINANCE COMMISSION (FSC) INDICATED THAT THE GOVERNMENT BILL ON THE DIGITAL ASSETS BASIC LAW (SECOND PHASE OF LEGISLATION) WOULD BE SUBMITTED AS SOON AS POSSIBLE AND THAT THE ISSUANCE OF GUIDANCE ON THE ENCRYPTED ASSET TRANSACTIONS OF LEGAL PERSONS WOULD BE CARRIED FORWARD IN COORDINATION WITH THE LEGISLATIVE PROCESS, WITH THE PROPOSED INCLUSION OF DIGITAL ASSET TRUST IN INDEPENDENT OPERATIONAL REGULATION AND A CAUTIOUS APPROACH TO THE REMOVAL OF THE TRUST FROM THE MANDATORY EXCHANGE. IN ADDITION, IT WOULD PROVIDE A MORE ACCESSIBLE ACCESS MECHANISM FOR TRADITIONAL FINANCIAL INSTITUTIONS TO APPLY FOR VASP LICENCES, TAKING INTO ACCOUNT EU PRACTICE. IN RESPONSE TO MARKET CONCERNS ABOUT THE SEGREGATION OF EXCHANGE HOSTING OPERATIONS, THE KCFC INDICATED THAT THERE ARE FEW CASES OF FORCED DISTRIBUTION ABROAD AND THAT THERE IS A GREATER TENDENCY TO PROTECT AGAINST CONFLICTS OF INTEREST BY IMPROVING BEHAVIOUR REGULATION RATHER THAN REQUIRING THE EXCHANGE TO OPERATE INDEPENDENTLY。