FSS and FIU Discuss Stronger Crypto Oversight Framework

Lee Chan-jin, governor of South Korea’s Financial Supervisory Service, announced that authorities are collaborating with the Financial Intelligence Unit to create a stronger oversight framework for virtual assets. This initiative follows several internal control failures at major virtual asset service providers, including Bithumb. During a National Assembly audit on Oct. 19, Lee responded to criticism from Democratic Party lawmaker Lee Kang-il regarding the fragmented oversight of virtual assets among various agencies, including the Financial Services Commission, the Financial Supervisory Service, the Financial Intelligence Unit, and the Bank of Korea. Lee indicated that the enhanced supervisory framework is part of the government’s draft of the Framework Act on Digital Assets, which is in its second phase of legislation but has not yet been announced. He also mentioned that coordination with the FIU has been strengthened and discussions on establishing a new oversight system are nearing completion.

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