South Korea, cryptocurrency It is preparing to implement stricter regulations against manipulation and illegal trading activities in the market. The new regulations also include serious sanctions, such as life imprisonment, for individuals whose illegal income from crypto earnings exceeds 5 billion won.
As Koinfinans.com reported, these laws attracted attention after Bitsonic’s CEO was sentenced to 7 years in prison for allegedly being involved in a 10 billion won fraud case. South Korean executives continue to show their seriousness and determination regarding the industry.
South Korea The “Cryptocurrency Users Protection Act” announced by the Financial Services Commission will come into force on July 19 and aims to make the cryptocurrency market more transparent and fair. Under this law, rules and regulations are introduced that prohibit market manipulation, illegal trading and misuse of material undisclosed information about crypto assets.
Tough Measures Against Cryptocurrency Crimes!
In case of violations, offenders may face prison sentences starting from one year or fines ranging from three to five times the illicit proceeds obtained. Specifically, in cases where the illicit profits exceed 5 billion won, perpetrators may face a maximum of life imprisonment and a fine of twice their earnings.
Virtual asset exchanges and other trading entities must comply with these strict rules set by financial regulators. Security of user deposits, offline storage of crypto assets, and measures such as insurance or setting aside adequate reserves against risks such as hacking or system failures are key components of these regulations.
The South Korean government will ensure compliance with regulations in the industry by overseeing the implementation of the Cryptocurrency User Protection Act and conducting regular inspections on cryptocurrency businesses. In cases of suspected violations, authorities will be able to request relevant data and documents to investigate unfair trading practices such as price manipulation. In cases of non-compliance, the Financial Services Commission will be able to impose various sanctions on businesses, which will help maintain regulatory standards in the cryptocurrency industry.
These tightened rules and regulations demonstrate South Korea’s commitment to ensuring security and fair trading in the cryptocurrency market, while also ensuring that innovation in the cryptocurrency sector does not suffer. Steps such as South Korea’s Financial Supervisory Service (FSS) considering the possibility of allowing spot Bitcoin ETFs following a launch in the US can be seen as part of an effort to maintain this balance.
