Calls to Unify Crypto Oversight... Lee Chanjin: "Included in Phase 2 Bill" [2026 Audit]

After criticism that cryptocurrency oversight is fragmented among the Financial Services Commission, the Financial Supervisory Service and the Financial Intelligence Unit (FIU), and should be consolidated, Financial Supervisory Service Governor Lee Chanjin said the proposed second-phase legislation on virtual assets, the Digital Asset Basic Act, includes a plan to centralize oversight.

Financial Supervisory Service Governor Lee Chanjin walks to his seat after handing his oath statement to Yoo Dongsu, chair of the National Assembly’s Political Affairs Committee, after taking the witness oath at a parliamentary audit of the Financial Supervisory Service and other agencies at the National Assembly on Oct. 19, 2026. Photo by Yoon Dongju

At the National Assembly’s Political Affairs Committee audit of the Financial Supervisory Service on Oct. 19, Lee was asked by Rep. Lee Kang-il of the Democratic Party of Korea, “I raised concerns that cryptocurrency oversight is split among the Financial Services Commission, the Financial Supervisory Service, the FIU and the Bank of Korea, and was told this would be addressed in the second-phase legislation. Has there been any improvement?” Lee replied, “The government’s proposal has not been announced yet, but the measure is included.”

Rep. Lee pointed out, “There are gaps in oversight of won-denominated exchanges that are already part of the regulated financial system,” adding, “There have been more than 90,000 transactions with unregistered overseas operators involving just one counterparty, Coinone.” He continued, “The Financial Supervisory Service appears to have inspected Bithumb three times in advance, but it failed to detect even once the incident in which 620,000 bitcoins were mistakenly credited,” and added, “People will not trust claims that a system like this can screen out criminal funds.”

In response, Lee said, “We are coordinating more closely with the FIU than before. We have also discussed and prepared the establishment of a system, and it is almost ready. I will provide details once everything has been finalized.”

This content was produced with the assistance of AI translation services.