South Korea's Financial Services Commission (FSC) has proposed significant amendments to virtual asset service provider (VASP) reporting requirements. The proposed changes aim to grant the FSC the authority to approve new executives joining crypto companies, making it mandatory for crypto firms to report personnel changes to the financial regulator. Executives would require FSC approval before assuming their roles in crypto companies.
The proposed amendments are expected to take effect by the end of March 2024 after undergoing various procedures, including review by the Ministry of Government Legislation and approval by the FSC. These rules will apply to VASP renewal reports due in the second half of 2024.
Additionally, the amendments would impact companies' ability to renew their VASP licenses, as the FSC would have the power to suspend license registration reviews if personnel are under investigation by local or international authorities.
The South Korean regulator has invited public feedback on the proposed changes until March 4, signaling the country's continued efforts to tighten crypto regulations.