South Korea's FSC Expands Financial Regulatory Sandbox to Virtual Asset Sector on June 19

According to the Financial Services Commission (FSC), the regulator announced on June 19 plans to expand the scope of financial regulatory sandbox exemptions to include the Virtual Asset User Protection Act and other emerging fintech sectors. The FSC said the regulatory sandbox has become a "game changer" for the financial industry but acknowledged current limitations in supporting startups' transition to full licensing. The FSC plans to begin implementing the regulatory amendments through revisions to the Financial Innovation Act in the third quarter, alongside efforts to streamline approval procedures and expand pilot-based sandbox projects.
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