South Korea has passed a new crypto bill called the Virtual Asset User Protection legislation, which is designed to regulate unfair trade practices and protect crypto investors.
In South Korea, Virtual Asset Service Providers (VASPs) Are Now Required to Take Responsibility for Customers' Deposits
South Korea has passed a new crypto bill called the Virtual Asset User Protection legislation, which is designed to regulate unfair trade practices and protect crypto investors.
The law combines 19 crypto-related acts, creating a single bill that defines digital assets and imposes fines for illegal trading methods such as exploiting undisclosed information, manipulating the market, and other unfair trading methods in the cryptocurrency industry.
The Capital Market Act is first applied to virtual assets with a securities nature under the new regulations. The Act also attempts to create a foundation for imposing fines and accountability for losses brought on by unfair cryptocurrency trading.
In South Korea, virtual asset service providers (VASPs) are now required to take responsibility for customers' deposits and to offer insurance to shield investors from risks like hacking and computer failure. A fixed-term prison sentence of at least one year or a significant fine may be imposed for breaking the new guidelines.
For gains made by unfair trade, the Financial Services Commission has the authority to levy a fine that is twice that amount. The news comes after Terraform Labs founder Do Kwon, behind the Terra ecosystem implosion last year, was sentenced to four months in prison by a court in Montenegro after being found guilty of using a false passport.
