The Financial Supervisory Service (FSS) of South Korea initiated an inquiry into payment gateway firms that interact with cryptocurrency on 3 June 2022. The Financial Services Commission (FSC) and the Financial Services Commission (FSS) are both government institutions, and the FSS is South Korea’s financial regulator.
According to local news portal Money Today Co., the FSS has sought reports from 157 payment gateways regarding any crypto-related services, future plans, and digital asset disclosure. However, according to an FSS investigation, only 6 had any digital assets.
Whilst the FSS is now the principal financial regulator, South Korea announced the formation of the Digital Assets Committee on May 31, 2022. This is a temporary solution, according to the release, to bring structure to the virtual asset business following the Luna-Terra catastrophe.
The standards include screening criteria for newly listed assets, market and trade monitoring, a level of disclosure, and other investor protections, according to the release. The country’s five largest exchanges appear to have agreed on rules and have formed their own committee to assist prevent another Terra-like occurrence (LUNA).
The FSS announced a remote conference with other financial supervisory authorities from five countries in the Asia-Pacific area soon after it launched its probe. The Indonesian Financial Supervisory Service hosted the event, which also included Australia, China, and Japan.
The meeting included topics such as global market circumstances, big tech, and cryptocurrency. The Korean envoy underlined the necessity for cryptocurrency regulation, virtual asset disciplinary action, and the extension of financial regulatory frameworks.
Cryptocurrency investigation began with Do Kwon
South Korean officials launched an inquiry into Do Kwon, the main personality in the Luna event, on Tuesday, 24 May 2022.
Korean officials have requested that monies not be taken from the country’s biggest crypto exchanges. The Seoul Metropolitan Police Agency specifically requested that the Luna Foundation Guard refrain from taking any action. Clues have been discovered, according to the police, that may link the organisation to embezzlement.
Furthermore, the Digital Assets Committee will be led by Yoon Chang-Hyeon, the head of the People’s Strength Virtual Assets Special Committee, who met with the top exchanges in response.