Cryptocurrency regulations have come to the top of the agenda again in South Korea. The Financial Supervisory Service asked for the strengthening of internal control mechanisms in the letter it sent to large virtual asset companies. While the institution emphasized that market confidence cannot be achieved only through sanctions, it stated that company management structures are decisive in this process.
Going beyond the sanctions-oriented approach
Financial Supervisory Service Chairman Lee Chan Jin met with top executives of 15 major virtual asset service providers on Wednesday. Lee said corporate governance systems are the basis of market confidence and called on companies to take steps to support sustainable growth.
Lee Chan Jin emphasized that trust in the markets cannot be established only by imposed sanctions, and that solid governance structures are the basic element of this.
Lee also asked industry representatives to be prepared for expected legal changes. This title includes the draft law on digital assets, as well as planned changes in financial information regulations and foreign exchange legislation. The institution drew attention to the importance of companies closely monitoring the legislative processes and adapting to new obligations early.
Mini-dictionary: The Financial Supervisory Service is one of the regulatory authorities in South Korea that supervises financial institutions and conducts market surveillance. Virtual asset service provider refers to licensed companies that offer exchange, custody and similar cryptocurrency services.
The Financial Supervisory Service increased its oversight of the cryptocurrency market in February 2026. The institution stated that this step will contribute to reducing market manipulation and protecting investors. Tighter monitoring of suspicious transactions is also a key part of the plan.
Surveillance will be expanded with artificial intelligence
The institution aims to make greater use of artificial intelligence and real-time analysis tools in market surveillance. It was stated that these systems will be used to detect large-scale transactions, sudden price movements and coordinated manipulation attempts. Thus, it seems that the regulatory framework is shifting from a punishment-based structure to a preventive surveillance model.
Lee said that the cryptocurrency market has a weak outlook in the first half of 2026. He associated this period with movements in fund flows and problems with Bitcoin payments. However, he added that the long-term outlook remains strong.
According to Lee, the increase in stablecoin usage was one of the indicators pointing to growth. Blockchain technology’s stronger connection with traditional finance and the proliferation of tokenization initiatives were also listed among the factors showing that the market has spread to a wider base.
At the meeting, it was emphasized that it is critical for trading platforms to detect market disruptive transactions before investors suffer losses.
Companies demanded gradual regulation
Managers attending the meeting stated that they would strengthen internal control mechanisms and adhere to legal obligations and self-regulation rules. This self-regulatory framework also covers token listings and advertising and promotional activities.
Industry representatives wanted the rules to be put into effect gradually. Stating that the differences in scale and capacity between companies are large, managers stated that uniform application may increase the compliance burden for some actors. He also requested policy support to preserve competitiveness.
