1. South Korea’s Financial Services Commission (FSC) has expressed concern over the country’s ambitious new legislation on cryptocurrencies that is currently under development.
2. Park Joo-young of FSC’s Financial Innovation Division said that it is important to create a regulatory framework that has international consistency.
3. Until international consistency is achieved, it will be difficult for Korea to create a regulatory system in solitary, Park said.
4. The comment by Park on Monday challenges South Korean president Yoon Suk-yeol’s initiative to institutionalize digital currencies expeditiously.
5. Yoon’s administration is reportedly planning to have the legislation by next year, set to go into effect in 2024.
6. Park further explained that without international consistency, various issues may emerge such as regulatory arbitrage by crypto firms that use gaps in a particular country’s laws to operate there, ultimately hurting the interests of investors not just in South Korea but globally.