The Financial Services Commission (FSC) of South Korea has suggested changes to the cryptocurrency laws that would provide law enforcement agencies greater authority when looking into cryptocurrency companies. First of all, for newly employed employees of cryptocurrency-related organisations to begin working, they must first give certified assent.
In a formal statement, the FSC stated that they plan to bring more changes to the current restrictions that have been put in place for the bitcoin industry. If enacted, it will become mandatory for all recently employed employees in the cryptocurrency sector to get clearance from the FSC before submitting applications for personnel changes.
The Ministry of Government Legislation will revise the amendments. The FSC will then have a vote procedure after this. According to the news source Money Today, it is planned to take effect at some point in late March.
Additionally, the proposed modifications seek to provide the FSC the authority to halt the review of a cryptocurrency firm’s license registration in the case that national or international regulators are looking into the company or any of its workers.
Allegedly, Binance disclosed last week that it is considering ways to reduce its stake in Gopax, a South Korean exchange in which it now holds the largest portion, in response to FSC concerns. Given that Gopax’s structural change was approved after Binance’s acquisition, it is plausible that the FSC is worried about Binance’s legal problems in the US.
The FSC is seeking public comments on the suggested changes; this process will run until March 4, 2024.