Korea Races to Regulate Amid Fears of US Crypto Migration
The US Securities and Exchange Commission (SEC) has accelerated its efforts to formalize digital-asset rules, sparking concerns that South Korean companies could move their operations overseas. The SEC's Regulation Crypto Assets framework would make fundraising easier for eligible digital-asset companies, potentially attracting them to the US.
According to experts, this development poses a policy challenge for South Korea, which needs a regulatory framework that can bring capital back through a basic digital asset law, an issuance and disclosure regime, and a reshoring policy. The Financial Services Commission (FSC) has announced its intention to speed up work on the basic law.
Min Byung-deok, a Democratic Party lawmaker, criticized financial authorities for delaying legislation on digital assets. He argued that Parliament can begin discussions while the government proceeds separately, then reconcile the two later.