Financial Services Commission Holds Virtual Asset Meeting Today... Discussions on Corporate Accounts and Phase 2 Legislation

# Financial Regulators to Meet Virtual Asset Exchanges on Key Issues SEOUL—The Financial Services Commission (FSC) plans to convene a meeting with virtual asset exchanges today to discuss key industry issues, including the specific direction for allowing corporate accounts and the so-called 'Phase 2 Legislation' governing virtual asset service providers. According to financial authorities, the FSC will host the 'Virtual Asset Industry and Experts Meeting' at 2 p.m. at the Government Complex Seoul. The meeting is designed to solicit input from the industry concerning major issues in the virtual asset market. Kim So-young, Vice Chairman of the FSC, will preside over the meeting. Attendees will include representatives from the Ministry of Economy and Finance, the Financial Intelligence Unit (FIU), the Financial Supervisory Service (FSS), the Korea Federation of Banks, and various virtual asset exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax. Although Upbit's CEO Lee Seok-woo will not be in attendance, other executives from Upbit will participate. Previously, financial authorities imposed a three-month partial business suspension on Upbit and issued a reprimand warning, a significant disciplinary action, against CEO Lee for violating the Specific Financial Information Act. During today's meeting, the FSC is expected to gather detailed opinions from the industry regarding the direction for allowing corporate virtual asset accounts. Last month on the 13th, authorities announced that corporate accounts would be gradually permitted for law enforcement agencies, non-profits, and listed companies. Currently, fine-tuning policies for corporate accounts remains a challenge. Key issues include determining which types of virtual assets can be traded and how to mitigate money laundering risks. There are also expectations that the industry will push for the listing of virtual asset spot exchange-traded funds (ETFs). The government has so far taken a cautious stance on spot ETFs due to concerns about the risks associated with virtual assets and potential spillover into the financial system. The broader 'Phase 2 Legislation,' encompassing comprehensive regulations for the virtual asset industry, will also be on the agenda. The financial authorities are supporting the National Assembly's push for Phase 2 Legislation while preparing to improve trading processes and IT stability in the interim. A spokesperson from the financial authorities emphasized, "Today's meeting is an opportunity to listen to the industry's suggestions and gather opinions on overall issues."