Financial Services Commission to Prepare Corporate Digital Asset Guidelines Next Month... “Internal Control Needs Strengthening”

# South Korean Financial Regulatory Body to Release Guidelines for Corporate Digital Asset Market Participation By Oh Soo-hwan, Block Media The Financial Services Commission (FSC) announced it would release detailed guidelines next month for corporate participation in the digital asset (virtual asset) market. These guidelines will include criteria for market entry, trading procedures, and disclosure requirements. The FSC emphasized anti-money laundering (AML) and enhanced security as key priorities, pledging ongoing communication with the industry throughout the guide's formulation process. Kim So-young, Vice Chairman of the FSC, stated during a virtual asset industry and expert meeting held at the Government Complex Seoul on the 12th that "guidelines for non-profit organizations and digital asset exchanges will be prepared by next month, while guidelines for listed companies and professional investors will be available by the third quarter of this year." He added that "corporate participation in the digital asset market is a process of changing market practices rather than laws," stressing the need for the industry and market to create best practices together. # Emphasis on Anti-Money Laundering Systems The FSC has underscored the enhancement of AML systems as the top priority. Vice Chairman Kim noted, "Given the increasing concerns about money laundering using digital assets, we must rigorously examine corporate customer verification procedures and transaction monitoring systems in line with international standards." Consequently, banks and digital asset exchanges plan to establish practical guidelines to ensure transaction transparency and bolster AML systems. # Importance of Internal Controls for Participating Corporations Vice Chairman Kim also highlighted the significance of internal controls for corporations entering the virtual asset market, urging that "corporations participating in the virtual asset market should have appropriate internal control mechanisms." He called on market experts and banks to assist non-profit organizations in establishing minimum internal control standards, including virtual asset receivability examination, audit procedures, professional investor trading processes, and transaction disclosures. # Strengthening Cybersecurity Measures The FSC has requested enhanced cybersecurity measures from digital asset exchanges and related institutions. "As the digital asset market expands, external threats such as hacking are increasing," remarked Kim, urging the implementation of security strategies to protect user assets. In response, the Digital Asset Exchanges Joint Consultative Body (DAXA) and exchanges like Upbit, Bithumb, Beeblock, and Wavebridge plan to upgrade their anti-hacking systems and reinforce user protection measures. # Collaborative Efforts from Industry Stakeholders The discussion on the day included major digital asset exchanges, custody companies, the Korea Federation of Banks, and banks issuing real-name accounts like K Bank and Shinhan Bank. Participants deliberated on regulatory updates and enhanced security measures required to support broader corporate participation in the digital asset market. The Korea Federation of Banks intends to develop practical guidelines supporting corporate market participation and collaborate with exchanges to enhance AML frameworks. DAXA announced plans to strengthen AML systems tailored to corporate characteristics and improve self-regulation to stabilize the market. Additionally, the Korea Student Aid Foundation will investigate domestic and international cases of digital asset accounting, liquidation procedures, and control mechanisms within universities, providing guidance on applying these insights to university settings. Vice Chairman Kim concluded by stating, "We will regularize market discussions to maintain continuous communication with the industry throughout the policy implementation process." # Gradual Permission of Corporate Digital Asset Investment The FSC plans to phase in corporate digital asset investment permissions starting this year. Initially, in the second quarter, non-profit organizations will be allowed to issue real-name accounts and liquidate digital assets on exchanges. In the latter half of the year, real-name accounts for digital asset trading will be issued to 3,500 listed companies and professional investors. [End of Article]