Report says South Korea will pass crypto legislation in second half of 2025

Discussions to create a follow-up rule to its crypto regulatory framework have started at South Korea’s top financial body.

According to reports, the discussion included establishing requirements for more responsibility and transparency from stablecoin issuers and exchanges. According to local news sources, South Korea has formally started talks to create the second section of its crypto legal framework and plans to prepare the law by the second half of this year.

Local news outlets have reported that South Korea has formally initiated discussions to develop the second component of its crypto regulatory framework. The goal is to draft the legislation by the second half of this year.

In order to safeguard investors and remove regulatory uncertainties, major nations across the globe are speeding up the creation of crypto legislation, according to FSC Vice Chairman Kim So-young, who spoke at the conference.

After enacting legislation a year earlier, South Korea’s first crypto regulatory framework entered into force in July of last year. By imposing more stringent regulations on exchanges, such as requiring service providers to store at least 80% of user cryptocurrency deposits in cold storage apart from their own money, the framework aimed to safeguard cryptocurrency investors.

According to reports, the FSC Vice Chair said that the follow-up regulatory framework had to adopt a thorough and methodical approach that takes into account service providers, cryptocurrency consumers, and the cryptocurrency market.

Increasing openness in new cryptocurrency listings on exchanges and requiring crypto businesses to disclose information in the same way as regular financial organizations were among the subjects covered at Wednesday’s discussion.

Edaily claims that the discussion also covered stablecoin legislation, with authorities examining international standards for issuers’ reserve asset management and user redemption rights.

With its local cryptocurrency exchange Upbit ranking third globally in terms of volume last month, South Korea has one of the biggest and busiest cryptocurrency marketplaces in the world.

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