The Financial Services Commission (FSC) plans to introduce a physical cryptocurrency exchange-traded fund (ETF) and establish a regulatory framework for stablecoins in the second half of this year. It will also pursue the 'one-strike-out' system to eliminate unfair trading in the stock market.
According to financial sources on the 22nd, the FSC recently reported to the National Planning Committee its plan to introduce a physical cryptocurrency ETF in the second half of the year, considering cryptocurrency risks, real economic impacts, and investor benefits. The plan will include the basis for ETF introduction, infrastructure for setting up, custody, operation, and evaluation, as well as investor protection measures.
The FSC intends to complete a regulatory framework for cryptocurrencies to create a safe investment environment. This includes the second-stage cryptocurrency law covering listing, disclosure, business operator conduct, and investigation and punishment of unfair practices. Simultaneously, it will develop a regulatory framework for stablecoins and encourage cryptocurrency exchanges to lower fees through comparative disclosure.
The commission will also root out unfair trading in the stock market. It will implement the 'one-strike-out' system promised by President Lee Jae-myung, which immediately removes securities criminals from the market. To quickly eliminate companies with a high potential for unfair trading, it will strengthen delisting criteria in the second half of the year.
To prevent the use of undisclosed information, the plan mandates that companies must claim back short-term trading profits made by insiders through stock trading. The FSC intends to recover these illicit gains by imposing a surcharge of up to twice the unjust profit amount.
The commission is reviewing the institutionalization of a principle of treasury stock cancellation and will work with the Ministry of Justice and listed companies to implement this. Measures restricting financial investment product trading and executive appointments for unfair trading actors have been in effect since April.
