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South Korea Enhances Crypto Oversight with Proposed Executive Vetting Process

Strengthening oversight in South Korea's crypto sector

South Korea is taking a significant step forward in regulating the cryptocurrency industry with the introduction of new legislative amendments. These proposed changes, brought forth by the Financial Services Commission (FSC), aim to tighten oversight by requiring executives of crypto companies to secure regulatory approval prior to their appointments. 

This move is designed to address and "improve" certain loopholes in the existing legal framework governing the country's vibrant crypto sector. Under the new regulations, any executive changes within South Korean crypto firms will be contingent on the FSC's prior approval, marking a departure from the current practices where such a mandate is absent. 

Scheduled for enactment by the end of March, following a review by the Ministry of Government Legislation and the FSC's voting process, these amendments underscore the government's intent to bolster the integrity and stability of the crypto market.

Binance's response and public feedback solicitation

Binance, a global cryptocurrency powerhouse, has indicated its intention to scale down its involvement with Gopax, a South Korean exchange where it is currently the principal shareholder. This decision reflects Binance's strategy to navigate regulatory challenges and align with the FSC's expectations, especially amid delays in Gopax’s structural adjustment approval—delays that may stem from Binance's legal entanglements in the United States.

The FSC is actively engaging the public for input on these amendments until March 4, demonstrating a collaborative approach to refining the regulatory framework. However, as of the latest updates, the FSC has yet to comment further on these developments, leaving the industry and observers awaiting additional insights into the future of crypto regulation in South Korea.