The South Korean Financial Services Commission (FSC) held two pivotal meetings on March 4, 2026, addressing both a major exchange crisis and the future of institutional crypto participation. The first meeting of the Virtual Asset Committee, led by Vice Chairman Kwon Dae-young, focused on resolving the "Bithumb shortage" crisis. This incident originated from a promotional "Random Box" event where a staff member erroneously set payouts in Bitcoin (BTC) instead of Korean won. Intended rewards of 2,000 to 50,000 KRW (approx. $1.40–$35) were mistakenly credited as 2,000 to 50,000 BTC, temporarily creating billions in erroneous user balances.
The FSC plans to push Bithumb and other relevant parties to compensate affected users. To prevent future technical failures, the regulator announced a "two-track" policy to tighten risk management while expanding the market. New standards for computer systems and cybersecurity will be set, and exchanges may be held liable for damages even without proven negligence.
Simultaneously, the FSC is advancing its long-term regulatory framework. A key discussion point was the Digital Asset Framework Act (Phase 2 Act), which includes redefining the legal term "virtual asset" to align with global standards and support diverse business models. The committee also proposed a stablecoin issuance model requiring banks to hold a controlling stake (50% plus one share) to ensure stability.
In a related strategic move, the FSC is accelerating plans to allow corporate entities direct entry into the crypto market. FSC official Hong Jae-seon confirmed the expedited timeline, linking it to the forthcoming "second-phase" legislation. The priority is establishing a robust framework focusing on market stability, internal controls, and anti-money laundering (AML) compliance before opening to institutional capital. Hong indicated that over-the-counter (OTC) trading desks and formal market maker roles are being considered for long-term market structure.
The FSC also launched the Token Securities Consultation Body, a joint group of officials, experts, and financial institutions. Their mandate is to design infrastructure for the Token Securities Institutionalization Act, set for full effect on February 4, 2027. This initiative aims to create a digital innovation ecosystem for investing in fractionalized assets (like music rights, real estate) via blockchain smart contracts, develop a customized investor protection system, and enable T+0 on-chain payments using stablecoins.
