The proposed amendment to South Korea’s virtual asset service provider reporting requirements is expected to go into effect by the end of March 2024.
South Korea’s financial watchdog proposed amendments requiring new executives of crypto projects to get regulatory approval before they start working in crypto companies.
On Feb. 5, the Financial Services Commission (FSC) proposed a major change in its virtual asset service provider (VASP) reporting requirements. The proposal aims to give the FSC the authority to screen executives joining crypto companies. If enacted, the law would compel crypto firms to report changes in personnel to the financial regulator. With this, executives would not be able to start their jobs unless the FSC approves their personnel change report.
Local news outlet Money Today expects the amendment to go into effect by the end of March 2024 after going through several procedures, including a review from the Ministry of Government Legislation and a resolution by the FSC. Once the ordinance is revised, the rules will apply to VASP renewal reports to be made in the second half of 2024.