Financial Commission organization reorganization bill passed the State Council

The Korean Financial Commission approved an organizational reorganization plan at the State Council. This reorganization includes the establishment of digital financial policy officers and virtual asset-related departments, aiming to actively respond to changes in the financial environment.

(South Korea is expected to establish a "Virtual Assets Section" by the end of June to protect user assets. Civil servants are not allowed to hold virtual assets)

Digital Financial Policy Officer is launched to establish a dedicated department for virtual assets

The Financial Innovation Planning Group, which has been temporarily operating for about six years since July 2018, will now serve as a digital financial policy officer to respond to the development of new technologies such as artificial intelligence, big data, and blockchain, and to support financial technology and The growth of big tech companies. With the formalization of the organization, a total of 12 employees were transferred to full-time positions, and a new Level 5 civil servant responsible for the application of artificial intelligence in the financial sector was added.

(Taiwan Special Law Public Hearing｜Member Luo Mingcai: The progress of the special law is too slow, the Financial Supervisory Commission only has six people in charge, and will discuss the Virtual Asset Management Bureau)

Establish virtual assets division to strengthen user protection

In response to the upcoming implementation of the Virtual Asset User Protection Act on July 19, 2024, a new Virtual Asset Section has been established under the Digital Financial Policy Officer. The Virtual Assets Section will temporarily operate and be responsible for the management and supervision of establishing virtual asset market order and user protection. At the same time, the Virtual Assets Section also plans to actively respond to unfair transactions in virtual assets and carry out sanctions such as fines and criminal prosecutions.

The dedicated department for virtual asset laundering and prevention will be extended until the end of 2025

The temporary establishment of the Institutional Operations Planning Officer of the Financial Intelligence Unit (FIU) and the Virtual Assets Inspection Section have been extended until the end of 2025.

This is in order to continue to implement the work related to the prevention of money laundering of virtual asset operators under the standards of the International Organization for the Prevention of Laundering (FATF) and the Specified Financial Intelligence Act. In addition, we will continue to promote the supervision, inspection and sanctions of virtual asset operators.

Strengthen manpower to deal with fair transactions in the capital market

To strengthen the response to unfair transactions in the capital market, three more investigators have been added. This is because the forms and techniques of unfair transactions in the capital market have recently become more cunning, and the number of investors in the capital market has increased significantly, leading to the expansion of unfair trading incidents and damages. The additional investigators will actively enforce new businesses such as fines, illegal income estimation, and voluntary declarations of reductions and exemptions.

Future schedule and other adaptations

The organizational reorganization of the Financial Commission approved by the Korean State Council will be announced and implemented on June 25. In addition, the meeting operation information team leader and the accounting system team leader were newly established using the total human capital system. The conference operations information team leader will support the smooth operation of the Finance Committee and take charge of information work for inter-departmental cooperation, while the accounting system team leader will be responsible for corporate accounting-related policy work.

This article South Korea’s Financial Committee compiled a total of 12 full-time personnel through the virtual assets department first appeared on Chain News ABMedia.