South Korea’s Financial Supervisory Service (FSS) has started an inquiry on payment gateway facilities that operate with digital assets. The agency is known as the financial regulator of the country and runs in line with the FSC (Financial Services Commission), with both working as government organizations.
As a native news outlet called “Money Today Co.” reported, reports had in advance been demanded recently by the FSS from up to 157 of the gateways regarding any services dealing with cryptocurrencies, the strategies of the firms about this in future, as well as the disclosure of the assets under their possession. However, a report from the FSS mentioned that just six of the inquired institutions were holding digital assets.
On 31st May this year, even though the FSS is at the moment the chief financial regulator, South Korea declared the approaching Digital Assets Committee’s launch. As per the declaration, this would work as a short-term solution to provide an arrangement for the industry of digital assets after the crash of Luna-Terra.
In line with the declaration, the instructions take into account the screening criteria concerning the assets that are freshly listed, marketing monitoring, a disclosure level, as well as the rest of the investor protections. The 5 prominent exchanges working within the jurisdiction of the country seem to give consent for the standards and a separate committee has also been structured by them to assist shield against any other incident as took place in the case of Terra (LUNA).
Just after the start of the investigation by the FSS, it declared a remote conference with the rest of the financial supervisory institutions from 5 nations within the Asia-Pacific zone. The very occasion was hosted on the behalf of the Financial Supervisory Service of Indonesia taking into account Japan, China, and Australia as well.
The meeting spanned around the conditions of the global market as well as crypto and big tech. the representative from Korea pointed out that there is a requirement for the regulation of cryptocurrency, an organized action covering virtual assets, in addition to the growth of the regulatory agendas that are focused on the financial industry.
South Korean officials began an investigation, on 24th May, against Do Kwon (the paramount personality in the case of Luna collapse). The People’s Strength Virtual Assets Special Committee’s chairman, Yoon Chang-Hyeon (who had conversed with the well-known exchanges in this regard), will front-run the Digital Assets Committee in question.