The Virtual Asset User Protection Act (the “Act”), which is the first Korean regulation explicitly designed to regulate the virtual asset industry, was enacted on July 18, 2023 and is scheduled to take effect on July 19, 2024. On December 11, 2023, the Financial Services Commission (the “FSC”) released a proposed enforcement decree (the “Proposed Enforcement Decree”) and proposed supervisory regulations (the “Proposed Supervisory Regulations”) to the newly enacted Act to set forth the details of the Act. The public comment periods on the Proposed Enforcement Decree and the Proposed Supervisory Regulation are open until January 22, 2024.
For details of the Act, please refer to our July 2023 Newsletter that covers the passage of the Act at the National Assembly’s plenary session (Link). This Newsletter focuses on the details of the Proposed Enforcement Decree of the Act and the Proposed Supervisory Regulations.
Please refer to the enclosed Newsletter, which covers key aspects of the Proposed Enforcement Decree and the Proposed Supervisory Regulations.
