The Financial Supervisory Service Takes First Step with 'Virtual Asset Market Risk Council'... Aiming to Protect Consumers

[Asia Economy Reporter Lee Jung-yoon] The Financial Supervisory Service (FSS) announced on the 28th that it held the first meeting of the "Virtual Asset Market Risk Council" to identify risk factors related to virtual assets and to prevent them.

The FSS formed the council together with nine external experts from virtual asset exchanges and academia. The council aims to enhance the internal controls and consumer protection capabilities of virtual asset service providers to ensure that the risks of virtual assets, which have high price volatility, are not unfairly passed on to consumers. It will also conduct research on the expected risks and management measures as the utilization of virtual assets expands.

At this meeting, the exchanges presented the current status of their internal controls related to consumer protection and the results of their self-assessments, while academia diagnosed the risks of the domestic virtual asset market and proposed measures to supplement the exchanges' internal control standards. Additionally, Lee Jin-seok, Deputy Director of the FSS, stated, "As the Big Blur phenomenon, where virtual assets and traditional finance converge, intensifies, the possibility of new risks spreading to the existing financial market cannot be excluded," adding, "Research on this should be conducted within the council, and we ask for active participation in discussions on various potential risks."

The FSS stated, "We plan to operate the council regularly in the future and expand participating institutions as necessary to gather diverse opinions related to virtual assets from financial companies, research institutes, and others depending on the discussion topics."

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