Virtual Currency Emerges as a National Audit Issue This Year... "Financial Services Commission Must Establish Delisting Criteria for Junk Coins"

"Pilot Project Needed Before Introducing Fractional Trading of Domestic Stocks"

[Asia Economy Reporter Ji Yeon-jin] The National Assembly has pointed out that the government needs to establish concrete guidelines for the listing and delisting of altcoins (coins other than Bitcoin).

According to the '2021 National Audit Issue Analysis' published by the National Assembly Research Service on the 3rd, cryptocurrency exchanges are subject to review when reporting to the government under the Special Financial Transactions Information Act (Special Act on Reporting and Using Specified Financial Transaction Information), including ▲Information Security Management System certification ▲Real-name verified deposit and withdrawal accounts ▲Qualifications of representatives and executives (registered executives). Real-name verified deposit and withdrawal accounts allow financial transactions only between the accounts of virtual asset service providers and customers opened at the same bank, which can be confirmed through a certificate issued by the bank.

Cryptocurrency exchanges, in order to pass banks' safety evaluations, have been delisting multiple coins at once, causing backlash from the issuing companies and investors of those coins. The Research Service pointed out, "If exchanges decide to terminate trading support without transparent procedures and standards, issuing companies and investors may suffer losses," adding, "If different standards are applied by each exchange, it may be difficult to ensure the effectiveness of regulations, and stakeholders may be harmed. Therefore, it is worth considering establishing standardized regulatory content and procedures and linking them with public regulation."

The Research Service also proposed that, if fractional trading currently available only for some overseas stocks can provide practical wealth-building opportunities for teenagers, people in their 20s and 30s, and the elderly, and allow for diversified investment in top market capitalization blue-chip stocks with small amounts, the financial regulatory sandbox should be utilized to gradually expand fractional trading starting with overseas stocks. Furthermore, before introducing fractional trading for domestic stocks, it is necessary to monitor and promptly improve areas requiring supplementation in existing trading and deposit systems, such as 'pilot introduction' for domestic stocks and linkage with various asset management services.

This content was produced with the assistance of AI translation services.