South Korean Lawmakers Pass Crypto Bill to Regulate Virtual Assets
South Korean lawmakers have recently passed a crypto bill that aims to enforce penalties and impose liability for damages in cases of unfair trading of virtual assets. The new legislation, known as the Virtual Asset User Protection, outlines several penalties for transgressions such as market manipulation, the use of nonpublic information, and unfair trading practices. This move gives regulatory authority to the Financial Services Commission and The Bank of Korea to oversee crypto operators and asset custodians.
Key Points:
– The Virtual Asset User Protection legislation introduces penalties for unfair trading practices in the crypto market.
– The Financial Services Commission and The Bank of Korea will be responsible for regulating crypto operators and asset custodians.
– Compliance requirements, including insurance coverage, reserve funds, and detailed record keeping, are outlined in the legislation.
– Violation of the new legislation can lead to imprisonment for up to one year and fines up to five times the amount of profits gained from unfair trade.
Hot Take: South Korea Takes Steps to Regulate Crypto Market
With the passing of the Virtual Asset User Protection legislation, South Korea demonstrates its commitment to regulating the crypto market and protecting investors from unfair trading practices. The new rules empower regulatory authorities to oversee crypto operators and enforce compliance requirements. However, some critics argue that the legislation still reflects a traditional finance perspective and may not fully address the unique nature of the crypto industry. Nevertheless, this move is a significant step towards creating a safer and more transparent environment for virtual asset trading in South Korea.
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