South Korea's FSC Chairman to accelerate digital asset legislation

Lee Eok-won, Chairman of the Financial Services Commission, announced plans to accelerate legislation for a healthy digital asset ecosystem during a National Assembly audit. The proposed framework aims to establish regulatory systems for digital assets and strengthen measures against financial crimes, such as voice phishing that utilizes virtual assets.

Addressing technological challenges, Lee emphasized the need to ease network separation regulations to allow financial institutions to utilize AI-driven security tools. He noted that to defend against sophisticated AI-based hacking, the financial sector must be able to employ AI for proactive security monitoring and vulnerability detection.

Regarding the Digital Asset Basic Act, Lee stated that preparations are complete and final discussions with relevant ministries are underway. This move follows concerns from lawmakers that South Korea is lagging behind the United States and the European Union in establishing regulatory standards for stablecoins and other digital assets.