In a press release dated June 15, it was announced that the move to expand crypto staking services in the region is in response to the increasing demand for these services. It is also a strategic focus for many crypto exchanges due to the growing adoption of blockchain-based digital assets and investors’ interest in passive income. South Korea has experienced regulatory challenges and market volatility in recent years due to a surge in trading volumes and increased attention from both regulators and criminals.
To address this, the government has been working on creating a more transparent and secure environment for cryptocurrency trading. The Financial Services Commission (FSC) will be enforcing new regulations starting on July 19, aimed at providing better protection for investors and ensuring the stability of the digital asset market. This initiative is part of the effort to address the rising incidents of cryptocurrency-related crimes.
The Virtual Asset User Protection Act, which was passed in December 2023, seeks to regulate the cryptocurrency market, safeguard investors, and prevent fraudulent activities. The FSC will oversee the implementation of the act, which includes requirements for cryptocurrency exchanges such as reporting and auditing standards, as well as stricter regulations for initial coin offerings (ICOs).