South Korea's FSC denies the three-step rule for digital asset capital disclosure

Recently, South Korea’s Financial Services Commission (FSC) had to clarify circulating rumors in the industry regarding a proposed “rule of three,” specifically a 3% capital disclosure standard for corporations investing in digital assets. According to reports circulated by NS3.AI, the regulatory body categorically rejected these claims, stating that such speculation lacks official basis.

Where does the 3% disclosure proposal come from?

The confusion seems to have arisen around public discussions on how to regulate the participation of professional investment firms in virtual asset markets. However, the FSC emphasized that no definitive conclusions have been reached regarding specific investment limits or mandatory disclosure standards. The “rule of three” circulating in financial communities does not represent an official position of the Korean regulator.

Current status of regulatory negotiations

Currently, debates are underway within a public-private collaborative team dedicated to exploring how professional investment entities can responsibly participate in the digital asset ecosystem. These dialogue spaces will allow for the establishment of clear criteria without rushing. The FSC maintains a cautious approach, avoiding commitment to definitive regulatory frameworks until there is sufficient consensus among all involved parties.

Implications for future regulation

This clarification suggests that South Korea will continue to gradually refine its approach to virtual asset regulation. Although the specific “rule of three” has been debunked, authorities recognize the importance of establishing clear guidelines to protect corporate investors while enabling innovation in the sector.