South Korea Speeds up Crypto Regulation Efforts, Targets Corporate Accounts and Stablecoins

South Korea is speeding up its legislative efforts to regulate virtual asset accounts for corporations and stablecoins.

South Korea is accelerating its efforts to regulate virtual asset accounts for corporations and stablecoins, with financial authorities announcing their commitment to finalizing policies in the coming months.

At a monthly press conference on January 22, Financial Services Commission Chairman Kim Byung-hwan revealed plans to announce the authorities’ stance on corporate virtual asset accounts soon.

“The authorities will soon announce their position on corporate virtual asset accounts,” said Chairman Kim, as reported by local media outlet Money Today.

South Korea’s regulators are keeping a close eye on international developments, especially in the U.S., where the Trump administration is taking proactive steps toward crypto regulation.

Chairman Kim noted that global trends are significantly influencing South Korea’s pace in institutionalizing virtual assets. He emphasized the need to align with these developments while ensuring both industry growth and investor protection.

“We are monitoring the U.S. closely as they are moving quickly in terms of crypto regulation,” stated Chairman Kim. “These global trends are having a large impact on the speed at which we are institutionalizing virtual assets.”

“During the first round of legislation, which we can call ‘Stage 1,’ we were unable to include provisions for the regulation of stablecoins,” said Chairman Kim. “However, we are now advancing to ‘Stage 2,’ which will focus on the issuance and listing of stablecoins and other virtual assets.”

The recent omission of corporate account updates in a press release following the Virtual Asset Committee meeting had sparked speculation among industry observers. However, Chairman Kim clarified that the matter remains a priority for the Financial Services Commission (FSC).

“There were no updates on corporate virtual asset accounts in the recent press release after the Virtual Asset Committee meeting,” reported Money Today. “However, Chairman Kim stated that the FSC is continuing to discuss the issue and plans to finalize its position.”

The absence of stablecoin regulation in the first phase of legislation is also set to be addressed by the FSC as part of its ongoing efforts to institutionalize virtual assets in the country.

“We are planning to introduce a bill in the coming months that will finalize the authorities’ stance on corporate virtual asset accounts and stablecoins,” stated Chairman Kim. “We will continue our discussions on these matters and provide further updates.”

In other crypto-related news from South Korea, the Financial Intelligence Unit (FIU) is currently reviewing sanctions against Upbit, the country’s leading cryptocurrency exchange.

The FIU found that Upbit violated Know Your Customer (KYC) regulations, which resulted in a large number of unreported transactions involving virtual assets, as reported by Money Today on January 19.

“The FIU has discovered that Upbit violated the Act on Reporting and Using Specified Financial Transaction Information through a failure to perform proper KYC procedures,” reads the report. “This led to a large amount of unreported transactions of virtual assets.”

While the review is ongoing, Chairman Kim assured the public that the authorities are prioritizing a swift resolution to minimize potential disruptions for Upbit’s extensive user base. He stressed the importance of a thorough review to ensure fair outcomes for all stakeholders.

“The authorities are working quickly to review the sanctions against Upbit,” stated Chairman Kim. “We are also considering the exchange’s large number of users and the need to minimize any disruptions.”

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