South Korea passes cryptocurrency bill to tackle unfair trading

South Korea Enacts New Cryptocurrency Legislation to Protect Investors

The South Korean government is taking measures to shield crypto investors from collapses similar to Do Kwon’s Terra ecosystem by enacting a new cryptocurrency legislation.

On June 30th, the National Assembly approved the Virtual Asset User Protection Act. This bill is meant to regulate unfair trading practices and safeguard crypto investors, according to SBS Biz, a local news outlet.

Legislation is said to have combined 19 bills related to crypto, creating a single bill that defines digital assets and sets out punishments for illicit activities like using secret information, manipulating the market, and other unfair trading practices in cryptocurrency.

Local media reports that the purpose of the Virtual Asset User Protection Act is to initially apply the Capital Market Act to virtual assets having a securities character. Additionally, the legislation seeks to create a framework for holding accountable and imposing penalties for any losses resulting from unfair cryptocurrency trading.

In order to safeguard investors, virtual asset service providers (VASPs) in South Korea are now reportedly obligated to take responsibility for users’ deposits and offer insurance. These steps are essential for guaranteeing that users are safeguarded from hacks, computer malfunctions, and other potential risks.

As reported by SBS Biz, those who break the new regulations will face a definite jail term of no less than one year or hefty fines. For instance, the Financial Services Commission may impose a penalty equivalent to double the amount of the profits earned from illegal trading.

Do Kwon Sentenced to Four Months in Prison for Using False Passport

Do Kwon denies allegations of forging a passport and blames a “Chinese” agency, according to reports.

The sentencing of Terraform Labs founder Do Kwon to four months in prison by a court in Montenegro for using a false passport, has been followed by news of an arrest warrant in South Korea for alleged violation of the nation’s capital markets law.

South Korean prosecutors have recently declared that the collapse of Terra’s tokens is the biggest case of financial fraud or securities fraud to ever happen in the nation.

Magazine Asia Express reports: Huobi takes legal action against itself, 3AC rises from the ruins, South Korea crypto market experiences a surge.

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