South Korea’s vice financial regulator chief said on Thursday that authorities would take innovation more into account in the next stage of regulating cryptocurrencies.
Regulations need to have a balance between investor protection and technological innovation, said Kim So-young, vice chairman of the Financial Services Commission, at a conference held in Seoul on digital currencies. The conference was held by the South Korean government and central bank, jointly with the International Monetary Fund (IMF), following the Bank of Korea’s launch of a project in October to develop a wholesale central bank digital currency (CBDC).
South Korea this year enacted legislation on virtual assets to bring cryptocurrency markets under regulatory control for investor protection. It will come into effect from July 2024. The move came after a series of cryptocurrency troubles in recent years, including an alleged fraud by South Korean crypto entrepreneur Do Kwon that heightened public and regulator concerns over crypto markets.