South Korea’s Financial Services Commission said it will move quickly to submit a government bill for the second phase of the Digital Asset Basic Act, while aligning the release of corporate crypto trading guidelines with the legislative timetable. The regulator also plans to place digital asset custody under a separate line of business supervision and is taking a cautious stance on forcing exchanges to separate custody operations. On the issue of exchange-custody separation, the FSC said compulsory breakups are rarely seen in overseas markets and signaled a preference for conduct rules aimed at preventing conflicts of interest rather than mandating standalone custody entities. The commission also said South Korea will look to the European Union’s approach to make market entry easier for traditional financial institutions seeking virtual asset service provider licenses.
South Korea’s Financial Services Commission said it will submit a government bill for the second phase of the Digital Asset Basic Act as soon as possible, while coordinating the release of corporate crypto trading guidelines with the pace of the legislation.
The regulator also plans to bring digital asset custody under separate business supervision and is taking a cautious view on any move to force exchanges to spin off custody operations.
Addressing market attention on whether exchanges should separate custody from their core business, the commission said there are currently few overseas cases of mandatory separation. Its stated preference is to prevent conflicts of interest through stronger conduct supervision rather than requiring exchanges to run custody as an independent operation.
South Korea also said it will refer to the European Union’s approach and provide a more accessible entry mechanism for traditional financial institutions applying for virtual asset service provider licenses.
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