According to Cointelegraph, South Korea’s financial watchdog proposed amendments requiring new executives of crypto projects to get regulatory approval. The amendments need to be included before they start working in crypto companies.
Sources revealed that on February 5, 2024 the Financial Services Commission (FSC) proposed a change in its virtual asset service provider (VASP) reporting requirements. The proposal aims to give the FSC the authority to screen executives joining crypto companies.
It is believed that the law would compel crypto firms to report changes in personnel to the financial regulator. With this, executives would not be able to start their jobs unless the FSC approves their personnel change report, added Cointelegraph.
Furthermore, the proposed rules would affect companies’ ability to renew their VASP licenses. The amendments are expected to give the FSC the power to suspend the review for VASP license registrations if local or international authorities are investigating its personnel, concluded Cointelegraph.
(With insights from Cointelegraph)
