Lee Bokhyun, the head of the Financial Supervisory Service (FSS), has called on the chief executive officers (CEOs) of the cryptocurrency industry to make thorough preparations for the implementation of the upcoming Cryptocurrency User Protection Law. In a meeting held prior to the enforcement of the law on July 19, Lee emphasized the immediate execution of legal obligations, such as user asset protection and abnormal transaction monitoring, and warned of strict measures against illegal activities.
Lee highlighted the need for the cryptocurrency industry to enhance voluntary monitoring systems to eradicate illegal activities and emphasized that stern action would be taken through focused inspections on any violations post-law enforcement. He also urged the industry to follow the FSS-provided roadmap, which includes the establishment of internal regulations, the expansion of monitoring organizations, and the development of computer systems. This roadmap contains measures for implementing a regulatory framework for user protection, and the FSS plans to support this through self-inspections, on-site consulting, and trial applications.
Furthermore, the financial authorities have completed preparations for stringent actions, including criminal penalties or fines, against market manipulation, unfair trading, and the use of undisclosed significant information in the virtual asset market. The FSS has established dedicated departments such as the Virtual Asset Supervision Bureau and the Virtual Asset Investigation Bureau and has built a cooperative system with law enforcement. These measures indicate a commitment to maintaining the integrity of the cryptocurrency market.
The forthcoming law aims for systematic regulation and management of the cryptocurrency market, and areas where the industry’s preparedness is lacking will be reflected in the focus inspection items after the law’s enforcement.
