The head of South Korea’s Financial Supervisory Service, Lee Bok-hyun, is reportedly planning to meet with SEC Chair Gary Gensler in January to discuss crypto regulation. According to a report from South Korean news outlet Chosunbiz, the meeting will cover the current state of the cryptocurrency market and the direction of supervisory policies affecting the space. Additionally, discussions are expected to include the standards used by the United States to determine the security nature of virtual assets.
An unnamed South Korean government official emphasized the importance of regulatory cooperation between countries for borderless virtual assets. This meeting highlights the global nature of the cryptocurrency industry and the need for collaboration between regulatory authorities from different countries to address the challenges and opportunities presented by digital assets.
The article also highlighted that South Korea has introduced digital asset legislation this year with the aim of bolstering consumer protections for cryptocurrency investors, and these regulations are set to take effect in July 2024. According to data from KuCoin, around a quarter of adults aged 18 to 60 in South Korea engaged in cryptocurrency investments during a six-month period, establishing the country as a significant market for cryptocurrency trading.
The implementation of enhanced consumer protections is a response to a surge in fraud within South Korea’s crypto community, prompting regulators in the country to address the largely underregulated crypto space. Notably, in 2022, the collapse of South Korean crypto entrepreneur Do Kwon’s Terra-Luna ecosystem resulted in a $40 billion crypto market crash, underscoring the need for regulatory measures to safeguard investors and the broader stability of the cryptocurrency market in the country.
In March, Do Kwon faced legal issues when he was arrested in Montenegro and subsequently sentenced to four months in prison for using falsified travel documents. There were speculations that Kwon might be extradited to the United States before South Korea.
However, recent developments indicate that the Montenegro Appeals Court has rejected the decision by a Montenegro high court that approved the extradition of Kwon to either the U.S. or South Korea. This means that Do Kwon will remain in Montenegro for the time being, as per an announcement published by Montenegrin authorities on Tuesday.
The rejection by the Appeals Court was based on the failure of the investigating judge to provide the defendant, Kwon, an opportunity to be heard regarding the U.S. extradition request, as required by Montenegrin law. This legal development adds a layer of complexity to Kwon’s situation and the potential legal proceedings he may face.
