South Korea plans to segment virtual asset service providers to enhance user protection

On June 13, South Korea's financial regulator is taking steps to redefine the operations of virtual asset service providers (VASPs). The move is aimed at limiting the scope of activities of these service providers, which currently include a wide range of services such as listing, trading, settlement and custody. Last month, the Financial Services Commission and the Financial Supervisory Service submitted to the National Policy Committee of the National Assembly a detailed plan for future regulatory and legislative measures in the cryptocurrency sector. The plan was developed to coincide with the upcoming implementation of the Virtual Asset User Protection Act.