Table of contents
- Bitcoin to penalize cryptocurrency companies for fraud
- Korea to require data from cryptocurrency firms after anti-money laundering law
South Korea’s National Assembly endorsed a bill that spotlights on safeguarding the interests of cryptographic money financial backers in the nation’s initial step to construct a legitimate system given to such computerised resources, as per the Gathering’s true site. It is anticipated that the Virtual Asset User Protection Act, also known as the legislation, will become law within a year.
The bill, a combination of 19 recommendations from legislators, requires crypto specialist co-ops to ring-wall client’s resources and stores, to have protection, to hold a piece of stores in disconnected cold wallets in the event of hacks or framework disappointments, and to keep up with records, everything being equal.
Bitcoin to penalize cryptocurrency companies for fraud
Price manipulation, false cryptocurrency asset promotion, and failing to provide required investor information are all covered by the legislation. Those who are found guilty face a minimum of one year in prison or a fine ranging from three to five times the amount of profits they caused.
The bill characterises “virtual assets” as an “electronic representation of an economic value that can be traded or transferred electronically.” The bill prohibits the central bank digital currency (CBDC) under the Bank of Korea, the country’s national bank.
Korea to require data from cryptocurrency firms after anti-money laundering law
The Bank of Korea had been arguing for this right with the country’s financial regulators, but the legislation does grant the Bank of Korea the authority to request data from cryptocurrency platforms. According to the bank, the cryptocurrency market requires some supervision because it may have a significant impact on financial and monetary stability.
In a meeting with Forkast, Hwang Suk-jin, Ruling People Power Party’s Digital Asset Special Committee member said the proposed bill will lay out the legitimate freedoms for virtual resource clients and make a more secure and more dependable market for digital currencies.
Starting around 2020, South Korea had one of the most dynamic digital currency economies on the planet, positioning seventh overall on the Global Crypto Adoption Index accumulated by the blockchain information stage. However, the country fell to 23 on the index in 2022, the same year that the Terra-Luna stablecoin and cryptocurrency, which had been launched in the country, collapsed for US$40 billion, resulting in massive losses for hundreds of thousands of investors. Regardless, the South Korean Upbit cryptocurrency exchange is still the third largest by trading volume in the world.
The mishap with Terra-Luna was a driving force behind South Korean legislation that established a legal framework for cryptocurrencies, focusing first on investor protection. It is anticipated that the rules for local businesses regarding token issuance and information disclosure will be the primary focus of the subsequent stage of crypto legislation.
Source: https://www.cryptoknowmics.com/news/the-south-korean-government-will-enact-a-crypto-bill-aimed-at-protecting-investors