The Korean Financial Services Commission plans to advance independent regulation of digital asset custody, optimizing the admission mechanism with reference to the European Union.

The Financial Services Commission (FSC) of South Korea will submit the second phase of legislation for the Basic Law on Digital Assets, planning to bring digital asset custody under independent business supervision. The FSC will also reference the EU model to provide an access mechanism for traditional financial institutions to apply for Virtual Asset Service Provider (VASP) licenses. The FSC takes a cautious stance on mandating exchanges to separate custody business, preferring to prevent conflicts of interest through improved conduct supervision.