FSS Launches Virtual Asset Oversight Bureau to Regulate and Investigate Cryptocurrencies

The Financial Supervisory Service has launched the Virtual Asset Supervision and Investigation Bureau to oversee and investigate virtual assets. The bureau, consisting of 33 members, including IT experts, lawyers, and accountants, aims to address the recent market fluctuations caused by the approval of a BTC spot exchange-traded fund (ETF). To minimize regulatory gaps, the bureau will create a roadmap for regulatory implementation and a self-inspection checklist for virtual asset operators. The focus is on strengthening the regulatory framework before the implementation of the Virtual Asset User Protection Act in July. Additionally, the bureau will establish a supervision system akin to financial institutions, enhance information disclosure obligations, conduct assessments of user protection levels, and prioritize inspections of major virtual asset operators. The Cryptocurrency Supervision and Investigation Bureau, within this framework, will monitor and investigate unfair transactions, review its surveillance system, and introduce an insider reporting system to monitor abnormal transactions on virtual asset exchanges.

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