South Korea’s Financial Services Commission (FSC) Chairman Lee Ok-won has proposed replacing the current registration system for cryptocurrency exchanges with a formal licensing framework. This initiative aims to strengthen regulation and oversight of the country’s cryptocurrency market, enhancing investor confidence and making the market more attractive. Currently, crypto exchanges in South Korea must renew their registration every three years, but the new proposal seeks to establish a stable legal foundation that clearly defines the responsibilities of trading platforms. This move is part of the second phase of the Digital Asset Basic Act, which focuses on improving market transparency and security measures. Over recent years, South Korea has implemented stringent regulations to curb financial misconduct and illegal activities related to cryptocurrencies. The new licensing system will not only solidify the legal framework but also support market development aligned with international standards. Following this change, companies operating in the crypto sector will be required to obtain official licenses, providing better protection for users and helping prevent illicit activities. However, these companies may also face additional restrictions and compliance requirements under the new rules. Overall, South Korea’s efforts mark a significant step toward making its cryptocurrency sector more organized and secure, potentially boosting the country’s market reputation and attracting greater investment.
Source: binance
