South Korea is set to enforce a new regulation requiring crypto companies

A new rule requiring executives of crypto companies to get prior approval from the Financial Services Commission (FSC) is about to go into effect in South Korea, which is a big step in the direction of tighter regulation of the crypto market.

South Korea intends to impose more regulations on the executives of crypto companies, mandating that they obtain authorization from the FSC, the nation’s financial regulator, before commencing their positions.

By the end of March 2024, this new rule—which is a part of proposed changes to how crypto services report their activities—will be in effect.

The FSC stated on February 5 that it intends to investigate new executives’ backgrounds in crypto companies before allowing them to work.

Any leadership changes will require firms to notify the FSC, and approval from the authorities will be required before these changes can be implemented.

The modifications are part of a larger initiative by the South Korean government to exert more control over the nation’s crypto industry.

To stop money laundering and illicit money transfers, these actions include regulating the use of crypto mixers, which can conceal the source of crypto transactions, and discouraging South Koreans from purchasing crypto with credit cards.

Through March 4, the FSC will be accepting public feedback on these proposed regulations. This move is a sign that the government wants the public to be involved in determining how South Korea will regulate crypto in the future.

By implementing these changes, South Korea hopes to guarantee a more secure and regulated atmosphere for cryptocurrency trading and activities inside its borders.

This is in line with a growing global trend of nations seeking to strike the correct balance between consumer protection and innovation in the quickly developing cryptocurrency space.