The Financial Supervisory Service asked for Banking Act-level inspection and sanction authority over virtual asset exchanges through the second-phase virtual asset law.
On the 19th, according to the financial sector, the Financial Supervisory Service (FSS) was said to have delivered to the National Assembly its "Recommendations on preventing financial accidents and on supervision and investigation systems in introducing the second-phase virtual asset law."
The Financial Supervisory Service (FSS) was also said to have argued that a legal basis should be established to impose business suspension on virtual asset exchanges that cause "ghost coin" problems, as in Bithumb's massive erroneous bitcoin payment incident. The FSS said the second-phase virtual asset law should specify that violating the "substantive holding obligation," which requires virtual asset businesses to substantively hold virtual assets of the same type and quantity as those entrusted by users, or failing to secure system stability, among other cases, constitutes grounds for business suspension.
The Financial Supervisory Service (FSS) said virtual asset exchanges should have their obligation to regularly establish system plans strengthened to the level of the Electronic Financial Transactions Act and that a balance verification obligation should also be introduced. The intent is to stipulate in law that they must continuously check whether assets in custody match the ledger. It also said the law should specify matters related to multi-approval procedures and system access rights management so that virtual asset exchanges comply with internal control standards.
In addition, the Financial Supervisory Service (FSS) argued that when system failures recur due to similar causes, this should not be recognized as grounds for blocking deposits and withdrawals by virtual asset exchanges. It said that if blocking deposits and withdrawals is overused, users' rights could be excessively infringed, and proposed reducing the exchanges' discretion.
At the same time, to effectively discuss the currency and foreign exchange policy impacts of stablecoins, it also proposed including the Financial Supervisory Service (FSS) as a Commissioner when forming a consultative body, and introducing regulations that restrict those who engage in unfair virtual asset trading from being appointed as executives of virtual asset businesses for up to five years.