South Korean financial authorities consider ”functional separation” plan for coin exchanges... conveys opinion to National Assembly

Financial authorities are considering a plan to separate the functions of cryptocurrency exchanges in South Korea, such as listing, trading, and custody, News 1 reported.
According to reports, this is intended to resolve the conflict of interest issue at exchanges, and structural separation of the custody and management businesses will be facilitated.
There is a proposal under discussion to gradually separate the labor force from other easy-to-perform jobs. However, the authorities have only submitted a proposal to the National Assembly, and no decision has been made on whether to institutionalize this proposal.
According to the industry, on the 14th, the Financial Services Commission and the Financial Supervisory Service submitted a report on the implementation of the National Assembly's supplementary opinion included in the enactment of the Virtual Currency User Protection Act to the National Assembly's Policy Affairs Committee in May.
The Virtual Currency User Protection Act, which passed the National Diet last year and will come into effect on July 19 this year, is a first-stage bill related to virtual currencies.
This is expected to be achieved through a two-stage bill. The National Assembly enacted the User Protection Act last year and added supplementary comments, and the Financial Services Committee will study the matters that could not be covered in the bill.
The Financial Services Committee then ordered a study to be carried out to consider supplementary opinions from the National Assembly. This report is the outcome of that study.
In a report, the financial authorities proposed the introduction of a "functional classification" of the virtual currency industry and "entry and business conduct regulations" to resolve the conflict of interest issue of virtual currency exchanges.
Currently, the cryptocurrency exchange is in charge of all functions, including handling listings through screening, distribution (buying and selling) of listed coins, and storage.
He suggested that it would be necessary to separate the various functions concentrated in exchanges because of the potential for conflicts of interest.
However, detailed functions (exchange business, listing business, depository business, custody and management business, advisory and discretionary business
The Financial Services Commission explained that it has not pointed out any such restrictions, even if the introduction of functional classification for exchanges is finalized in the future. In addition, the Financial Services Commission will consider the current market structure and global precedents, and will "
The Financial Services Commission said it would consider separating businesses that are "easy to separate." An example of a business that is easy to separate was custody and management.
"This is an issue that will be considered in the medium to long term while observing regulatory trends in the virtual currency market both domestically and internationally."