South Korea Plans Digital Asset Law Bill and Easier VASP Licensing for Traditional Financial Firms

South Korea’s Financial Services Commission said it will submit the government bill for the second phase of the Basic Digital Asset Act as soon as possible and align the release of corporate crypto trading guidelines with the legislative process. According to Odaily, the commission also plans to bring digital asset custody under separate business supervision, while taking a cautious stance on forcing exchanges to spin off custody operations. The commission said it will also look to the European Union for a more convenient licensing path for traditional financial institutions applying for virtual asset service provider licenses. It added that there are currently few examples overseas of mandatory separation of exchange custody businesses, and that it prefers strengthening conduct supervision to prevent conflicts of interest rather than requiring exchanges to operate custody separately.