The Financial Services Commission (FSC) in South Korea is asking its internal employees to execute crypto reporting for their holdings. The move comes as a second phase of legislation is due soon.
South Korea’s fintech regulator has mandated that its employees conduct crypto reporting, including information on their crypto asset holdings. Local media outlets reported that the internal employees of the FSC will have to report their assets in a form.
South Korea Financial Regulator Mandates Crypto Reporting
The FSC sent an administrative notice to internal employees, directing them to report their crypto holdings as defined under the Specific Financial Information Act. The employees this applies to are those currently performing duties related to virtual assets and employees who have performed the duties within the last six months.
An official from the FSC added that the agency planned to complete the revision in the second half of the year after an administrative notice.
Among the details that will be necessary in the form are the type of crypto assets held, date of acquisition, quantity, and amount.
Government officials are already required to declare crypto holdings. Those involved in making related decisions will be barred from owing crypto.
South Korea To Launch Second Phase of Crypto Legislation
South Korea, which has been fairly proactive regarding regulation, will soon launch the second phase of its legislation for the crypto market.
Last month, it passed legislation relating to consumer protection and unfair trade behavior regulation.
Just like the South Korean government, authorities around the globe are now focusing on cryptocurrency regulation as the market expands. Check out our in-depth guide on this topic to learn more: Crypto Regulation: What Are the Benefits and Drawbacks?
The upcoming phase will focus on matters related to fundraising and distributions, like ICOs. Legislators had asked the FSC to conduct research, which will then inform the discussions. The research is expected to be completed in August.
South Korean Banking Competition Heating Up
South Korea’s legislative and regulatory actions on the crypto market have been coming in swiftly and hard. These actions intensified after the collapse of Terra last year.
The country’s central bank now has the right to investigate crypto firms and their operations.
Meanwhile, the financial regulation of South Korea will have the responsibility of actually governing the regulation of the crypto market, which explains why it expects employees to conduct crypto reporting.
The authorities have been slowly establishing their supervision. In addition, the government has allowed new financial companies to enter the banking industry. Competition will likely ramp up and benefit consumers.
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