- The Financial Services Commission (FSC) urges the National Assembly to make unfair activity in crypto markets
- For-profits of more than KRW 5 billion ($4.2 million), the minimum sentence is five years in jail
- The FSC also asked for taxation on some types of non-fungible tokens, reversing previous pronouncements that said NFTs would be excluded
According to a report presented to the South Korean Parliament on Nov. 23, the Financial Services Commission (FSC) urges the National Assembly to make unfair activity in crypto markets, such as price manipulation and insider trading, criminally punishable. The findings of the FSC study will be utilized to create crypto legislation that will be debated in Parliament.
The National Assembly asked the FSC to prepare a complete draught of laws on cryptocurrency in one month, although the law is unlikely to be available in time for the year’s final legislative sitting on December 9, according to the news. The FSC recommends that penalties be proportional to the ill-gotten earnings, with a minimum sentence of one year in jail and fines of three to five times the ill-gotten gains. For-profits of more than KRW 5 billion ($4.2 million), the minimum sentence is five years in jail.
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The FSC also asked for taxation on some types of non-fungible tokens, reversing previous pronouncements that said NFTs would be excluded. Seoul plans to impose a 20% tax on crypto earnings above KRW 2.5 million ($2,100) in 2022, but the government and opposition parties are seeking a postponement, according to the Korea Times. The FSC, on the other hand, wants virtual asset service providers to create an organization so that they may self-regulate and resolve conflicts. The route to ICO laws, according to Do, will necessitate a re-examination of applicable financial reporting obligations. As is the case with stock market listings, the FSC mentioned white papers, investor prospectuses, and security statements among other possible reporting duties in a draught document given to the committee.
While the FSC acknowledged that white papers may vary depending on the ICO, it stated that they should include sections devoted to thorough project descriptions, virtual asset classes, information about important supporters, and underlying technology, among other things. In addition, the FSC draught document requested extensive information on transaction risks, taxes, and fees. In addition, the funds raised in the ICO must be placed into a bank account, which must be documented in accounting reports.