The South Korean National Assembly has officially approved a new independent cryptocurrency law today. The law in question consolidates 19 crypto-related bills that define digital assets.
First independent cryptocurrency law passed in South Korea
South Korea on Friday passed its first independent cryptocurrency law to increase investor protection. The National Assembly has officially approved the “Virtual Asset User Protection Act”. This law aims to regulate cryptocurrencies and protect investors against various risks. The legislation consolidates 19 crypto-related bills that define digital assets. These include market manipulation, insider trading, breaches, etc. includes sanctions. In addition, more oversight powers will be given to the Financial Services Commission (FSC).
The new law is the first local legislation in South Korea to protect cryptocurrency investors and restrict unfair transactions. The law’s adoption followed the approval of the Political Affairs Committee and the Judiciary Committee in May.
Meanwhile, Bloomberg shared the new South Korean cryptocurrency law with these details:
South Korea passed its first independent digital asset law to increase investor protection a little more than a year after the explosion of Do Kwon-created tokens exacerbated a $2 trillion crypto-market route.
New obligations come to crypto companies
With the entry into force of the law, various measures will be taken to establish the market discipline system by actively negotiating with the relevant institutions. The Financial Services Commission (FSC) will oversee crypto businesses and crypto custodians. Bank of Korea will be able to explore such crypto platforms. In addition, requirements such as insurance coverage, reserve funds and record keeping will be mandated.
South Korea seeks Do Kwon’s extradition
Meanwhile, South Korean prosecutors are demanding the extradition of Do Kwon, who caused $40 billion in damages with Terra-LUNA in 2022. Prosecutors say Do Kwon could face up to 40 years in prison if extradited.
cryptocoin.com As we have reported, Do Kwon was sentenced to four months in prison in Montenegro for going to Dubai using a fake passport. The extradition process will take place in early 2024 as Do Kwon will be detained until December.
Meanwhile, Swiss prosecutors froze crypto assets and fiat currency related to Terraform Labs and co-founder Do Kwon at digital asset bank Sygnum, at the request of the New York Federal Attorney’s Office and the SEC.
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