South Korea Introduces Strict Crypto Regulations with Severe Penalties
The South Korean government is implementing the Virtual Asset User Protection Act, set to take effect in July, which aims to crack down on crypto market manipulation and illegal trading activities. Violators who earn more than five billion won (approximately $3.76 million) from illegal activities could face life imprisonment and hefty fines. The law also grants the Financial Services Commission (FSC) the authority to oversee and penalize crypto businesses.
Key Provisions of the New Regulations
Under the new regulations, crypto exchanges are required to store at least 80% of their users’ digital assets in cold storage to enhance security. Additionally, the use of undisclosed important information about digital assets is strictly prohibited.
South Korea’s FSS Head Plans Discussion with SEC Chair
Lee Bok-hyun, the head of South Korea’s Financial Supervisory Service (FSS), intends to meet Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), in the second quarter of this year. The purpose of the meeting is to discuss the global impact of the SEC’s crypto policies.
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