Virtual Asset User Protection Act

The Ministry of Personnel Management is seeking a reevaluation of South Korean crypto holdings held by all government agencies. Key Takeaways:- South Korea's Ministry of Personnel Management has instructed government agencies to reassess restrictions on public officials' crypto holdings.- South Korean crypto market continues to grow, with over 15.6 million crypto investors and $70.3 billion in crypto assets. As report by Digital Today, the ministry asked each agency to examine its observance of the newly implemented regulations and to submit a report by January 31. The new restrictions, in place since the revised Public Official Ethics Act was enforced in December 2023, apply to officials in institutions in charge of crypto policies, such as those in economic and industrial policymaking. The government's stand on South Korean crypto holdings is to avoid conflicts of interest. For this reason, officials from involved institutions are not allowed to own or trade crypto assets. In this respect, the recent letter from the Ministry of Personnel Management implores agencies to adhere to such rules, particularly for institutions dealing with virtual asset regulations and economic policies. Meanwhile, the FSC of the government of South Korea has been studying ways to relax the restrictions on the institutional trading of cryptocurrencies. While it hasn't issued a full-blown ban on the same, virtually it has been discouraged by recommendations to institutions and warnings to banks to block the institutional entities' access to exchange accounts. However, the planned amendments mark a movement to support the local crypto sector after President Yoon Suk-you pledged to support the industry earlier. The ruling People Power Party also endorsed the plans for other cryptocurrency-related financial investments, including spot exchange-traded funds, which have not been permitted in the country so far. This demand catapulted, bringing the count in November with an added more than 610,000 users, where in total crypto investors are measured as 15.6 million, thus showing above 30% of South Korean citizens operating and trading different crypto resources. Such growth has been fostered by favourable regulatory developments, such as the introduction of the Virtual Asset User Protection Act, which will improve crypto exchanges in terms of security and thus raise investor confidence. With crypto assets nearing $70.3 billion, South Korea's digital asset market keeps growing. Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.