World Crypto Global
- Written by: Tareq Sikder
- Wed, 07 Feb 2024
- Israel
The South Korean government has taken decisiveaction to safeguard the interests of cryptocurrency investors with theenactment of the Virtual Asset Users Protection Act, announced by the FinancialServices Commission (FSC) today (Wednesday).Financial Services Commission Unveils VirtualAsset Users Protection ActThe new law, slated to take effect on July 19,2024, marks a significant step in regulating the cryptocurrency market in SouthKorea. Aimed at curbing market crimes and enhancing transparency, thelegislation prohibits the use of undisclosed significant information incryptocurrency transactions, as well as activities related to marketmanipulation and illegal trading.Under the provisions of the Virtual Asset UsersProtection Act, severe penalties await violators, including fixed-termimprisonment exceeding one year or fines ranging from three to five times theamount of illegal profit. Particularly, individuals who amass more than $3.8million from illicit cryptocurrencytrading schemes may face life sentences.Moreover, the FSC emphasizes itsauthority to supervise and inspect virtual asset business operators to ensurecompliance with the newly enacted legislation. This includes the investigationand enforcement of measures against unfair trading practices.#CryptoNews: South Korea's Financial Services Commission (FSC) has proposed new legislation to its financial regulations that would give the watchdog more authority over the local crypto sector.https://t.co/hiQ7B8NEVt CoinMarketCap (@CoinMarketCap) February 6, 2024Terraform Labs Collapse Sparks South Korea'sRegulatory ResponseThe impetus for the Virtual Asset UsersProtection Act stemmed from a significant industry upheaval involving TerraformLabs and its Founder, Do Kwon, a South Korean national. Following the collapseof Terra in May 2022, which wiped out more than $450 billion from the market,South Korean lawmakers moved swiftly to address regulatory gaps and strengtheninvestor protections.Kwon, currentlyfacing extradition to the United States, faces multiple charges, includingcommodities fraud, securities fraud, wire fraud, and conspiracy to defraud andengage in market manipulation.Earlier, the FSCunveiled draft regulations mandating that companies engaged incryptocurrency holding or trading disclose transaction details to the financialregulator, as reported by FinanceMagnates.Outlined in the draft rules, the FSC stipulated that companies must provideinformation regarding the volume of digital assets held, specifics regardingthe assets' characteristics, and details about their business operations.Moreover, the proposed regulations necessitated companies to reveal profitsgenerated from cryptocurrency activities alongside the market valuation oftheir holdings.This article was written by Tareq Sikder at www.financemagnates.com.
