South Korean Financial Services Commission Approves Establishment of Virtual Assets Department Comprising 12 Fulltime Staff

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Financial Services Commission Organizational Restructuring Plan Approved by State Council
Digital Financial Policy Officer Activated, Establishing Dedicated Department for Virtual Assets
Establishment of Virtual Asset Division to Strengthen User Protection
Dedicated Department for Anti-Money Laundering of Virtual Assets to Continue Until the End of 2025
Enhancing Human Resources for Fair Trading in Capital Markets
Future Schedule and Other Restructuring Contents
Financial Services Commission Organizational Restructuring Plan Approved by State Council
The Financial Services Commission of South Korea has approved the organizational restructuring plan during a State Council meeting. This restructuring includes the establishment of the Digital Financial Policy Officer and departments related to virtual assets, aiming to actively respond to changes in the financial environment.
(Taiwan Special Law Public Hearing | Committee Member Luo Mingcai: Special Law Progress is Too Slow, FSC Only Has Six Dedicated Personnel, Will Discuss Establishment of Virtual Asset Management Bureau)
In order to comply with the Virtual Asset User Protection Act, which will be implemented on July 19, 2024, a Virtual Asset Division has been established under the Digital Financial Policy Officer. The Virtual Asset Division will be temporarily operated and will be responsible for the management and supervision of establishing order in the virtual asset market and protecting users. Additionally, the Virtual Asset Division plans to actively address unfair trading of virtual assets through fines, criminal prosecution, and other sanctions.
The temporary Financial Intelligence Analysis Institute (FIU) system planning officer and the Virtual Asset Inspection Division have extended their terms until the end of 2025. This is to continue fulfilling the obligations of virtual asset providers in accordance with the standards of the Financial Action Task Force (FATF) and the Specific Financial Information Act related to anti-money laundering. Furthermore, regulatory, inspection, and sanctioning work for virtual asset providers will continue.
To enhance the response to unfair trading in capital markets, three investigators have been added. This is because the forms and methods of unfair trading in capital markets have become more sophisticated, and there has been a significant increase in capital market investors, leading to the expansion of unfair trading incidents and damages. The additional investigators will actively carry out new tasks such as fines, estimation of illegal gains, and voluntary declaration reductions.
The Financial Services Commission’s organizational restructuring plan, approved by the State Council of South Korea, will be announced and implemented on June 25. In addition, the Chief of Conference Operations Information and Chief of Accounting System have been newly appointed through the Total Human Resources Funding System. The Chief of Conference Operations Information will support the smooth operation of the Financial Services Commission and oversee the informationization of interdepartmental cooperation, while the Chief of Accounting System will be responsible for policy work related to corporate accounting.
Virtual Assets
South Korea
Further Reading
South Korea Plans to Establish “Virtual Asset Division” by the End of June, Aiming for User Asset Protection, Government Officials Prohibited from Holding Virtual Assets
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