Financial Services Commission: "Apply the Principle of Same Function-Same Regulation to Virtual Assets"

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Kim So-young, Vice Chairman of the Financial Services Commission, emphasized on the 22nd that "the principle of 'same function, same risk, same regulation,' which states that the same level of regulation should be applied when the same level of risk is posed to consumers and the market through the same function, cannot be an exception even for digital assets."

Vice Chairman Kim stated at the policy seminar on "Key Issues and Legislative Directions of the Digital Asset Act" held at the Korea Financial Investment Education Institute in the afternoon, "As the impact of digital assets on our economy and financial markets is increasing, the regulatory framework should be reviewed based on their functions and levels of risk."

However, he noted, "Digital assets are assets that have emerged due to new technologies that were not anticipated in the past, so there are limitations in encompassing them within the current legal framework," adding, "Considering the rapid changes and innovation potential in the virtual asset market, the digital asset regulatory framework needs to be flexible rather than confined to existing frameworks." He stressed that regulation should focus on essential matters and supplement and reorganize any deficiencies according to changing circumstances.

Above all, he pointed out that the Biden administration in the United States is expected to issue an executive order for the responsible development of virtual assets, and the European Union's (EU) virtual asset regulation proposal (MiCA) is expected to be implemented around 2024. He emphasized, "Considering the cross-border nature of digital assets, to establish an effective regulatory framework, it is necessary to closely monitor international discussion trends, reflect them, and strengthen cooperation and coordination with the international community."

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