TechFlow reported on October 8 that according to the Korea Times, Lee Hyun-deok (translated), Director of the Virtual Asset Supervision Bureau at South Korea's Financial Supervisory Service, stated during the Seoul Fintech Week 2024 event that while virtual assets currently have limited impact on financial stability, their influence is expected to continuously expand. Regarding regulatory gaps under the recently implemented Virtual Asset User Protection Act (shortened to "Virtual Asset Act"), Lee emphasized the need to address these gaps through enhanced industry self-regulation.
The Virtual Asset Act came into effect in July this year, primarily establishing obligations for virtual asset service providers to protect user assets and regulating unfair trading practices. However, since the law sets only minimum regulatory requirements for virtual asset service providers, concerns exist within the industry about potential regulatory gaps across multiple areas. In response, Lee said: "South Korea's regulatory framework has only just been established, and there may be public discussions in the future regarding further refinement of the system. This situation could mean regulatory uncertainty for market participants, and such uncertainty can sometimes hinder innovation and development."
