PANews reported on April 1st that, according to Edaily, Kim Nam-geun, a member of the Democratic Party of Korea, has proposed an amendment to the "Virtual Asset User Protection Act," proposing the establishment of an independent agency, the "Virtual Asset Market Oversight Agency," to strengthen the regulation of the digital asset market. The proposal points out that current laws only require virtual asset operators to monitor abnormal transactions themselves, resulting in inadequate market management. With the growth of the virtual asset market, the need for an independent oversight agency is increasingly urgent. The Oversight Agency would be responsible for monitoring and investigating abnormal transactions, member supervision, formulating market supervision rules, and making disciplinary decisions regarding members and employees. It would also have investigative powers such as requiring the submission of documents and summoning relevant individuals. Virtual asset exchanges would be required to join the Oversight Agency.

Financial authorities have expressed concern, believing that the agency's functions may overlap with those of the Financial Supervisory Service's Virtual Assets Oversight and Investigation Division. The bill has been submitted to the Parliamentary Political Affairs Committee and will proceed to the First Subcommittee for review.