South Korea Considers Regulation of DeFi and OTC Trading
A recent research report commissioned by South Korea's financial authorities recommends classifying providers of decentralized finance (DeFi) and over-the-counter (OTC) trading as unauthorized digital-asset operators.
The Korea Institute of Finance made the recommendation in a report submitted to the Financial Services Commission titled 'Second-Phase Legislation and Anti-Money Laundering System Improvements Related to Stablecoins.'
According to the report, most DeFi and OTC support providers fall into areas where regulatory jurisdiction is unclear, making it difficult for any single country to exercise supervisory authority.
The institute suggested that regulators should broadly interpret digital-asset business activities subject to anti-money laundering (AML) and counter-terrorist financing (CFT) rules and impose related obligations.