South Korea Proposes New Legislation Mandating Vetting Process for Crypto Executives

South Korea’s Monetary Companies Fee (FSC) has proposed new laws to its monetary laws that may give the watchdog extra authority over the native crypto sector. The amendments, introduced on Monday, intention to deal with ache factors within the present legislation and strengthen the FSC’s oversight of crypto firms.

One of many key modifications proposed is a requirement for brand spanking new executives at South Korean crypto firms to acquire regulatory approval earlier than assuming their duties. Beneath the proposed amendments, new executives would wish to submit personnel change functions to the FSC, and they might not have the ability to begin work till the FSC approves their functions. This is able to give the FSC extra management over the hiring practices of crypto firms and permit it to vet potential executives for suitability.

As well as, the amendments would empower the FSC to revoke an organization’s registration if it violates the Act on Company Governance of Monetary Corporations by improperly electing an government. This is able to successfully bar people who’ve been convicted of sure crimes from turning into executives at crypto companies.

The proposed amendments are set to endure revision by the Ministry of Authorities Laws and a voting course of by the FSC. They’re anticipated to be enacted by the top of March.