[South Korea's Financial Services Commission Plans to Regulate Digital Asset Custody as an Independent Business and Emulate EU Regulatory Measures] According to a report by Jinse Finance, on July 23, South Korea's Financial Services Commission (FSC) announced that it would soon submit the government bill for the 'Basic Act on Digital Assets' (Phase 2 legislation). The FSC plans to coordinate the release of corporate crypto asset trading guidelines with the legislative process and intends to regulate digital asset custody as an independent business. It also expressed a cautious stance on mandating exchanges to separate custody services. Additionally, South Korea will reference the EU's approach to provide a more accessible entry mechanism for traditional financial institutions applying for Virtual Asset Service Provider (VASP) licenses. Regarding the market's concerns over the separation of custody services from exchanges, the FSC stated that there are currently few cases of mandatory separation overseas. Instead, it prefers to address conflicts of interest through improved conduct regulations rather than requiring exchanges to operate custody services independently.