TechFlow reported that on October 8, according to the Chosun Ilbo, Lee Hyun-deok, director of the Virtual Asset Supervision Bureau of the Financial Supervisory Service of South Korea, said at the Seoul Fintech Week 2024 event that although the current virtual asset market has limited impact on financial stability, it is expected to continue to expand in the future. Regarding the regulatory gaps in the recently implemented Virtual Asset User Protection Act (referred to as the Virtual Asset Act), Lee Hyun-deok emphasized that it should be filled by strengthening industry self-regulation.
The Virtual Assets Act came into effect in July this year, mainly stipulating the obligations of virtual asset service providers to protect user assets and the supervision of unfair trading practices. However, since the law only sets minimum regulatory requirements for virtual asset service providers, the industry is worried that there may be regulatory gaps in many aspects. In this regard, Lee Hyun-deok said: "South Korea's regulatory system has just been established, and there may be public discussions on the improvement of the regulatory system in the future. This situation may mean regulatory uncertainty for market participants, and regulatory uncertainty sometimes hinders innovation and development."