The Virtual Asset User Protection Act will go into effect in South Korea on July 19, as announced by the Financial Services Commission. Market manipulation, illegal trading, and the use of undisclosed important information regarding virtual assets will be prohibited under the new regulations.
Furthermore, individuals found guilty of making illegal profits exceeding 5 billion won may face a maximum penalty of life imprisonment starting in the second half of the year. The Financial Services Commission will work with the Attorney General to determine fines for offenders.
Virtual asset exchanges and other business operators will be required to manage user deposits through banks for buying and selling virtual assets. Additionally, these operators must securely store over 80% of users’ virtual assets’ economic value offline.
In other news, South Korea’s Financial Supervisory Service sought advice from the U.S. Securities and Exchange Commission. The head of the FSS, Lee Bokhyun, presented a business plan for 2024 that includes a visit to New York to meet with SEC Chairman Gary Gensler.
The South Korean regulator has been actively working to tighten regulations in the crypto industry, with plans to establish two special bureaus for market supervision. In December, the FSC released a legislative notice outlining provisions of the upcoming cryptocurrency law expected to be implemented this summer, including requirements for crypto platforms.
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