South Korea on Friday passed its first standalone digital asset invoice to spice up investor safety at a time when the crypto trade faces regulatory challenges in different international locations, particularly within the US. The laws goals to extend crypto oversight and defend buyers from occasions just like the Terra-LUNA disaster attributable to Terra co-founder Do Kwon.
South Korea Virtual Asset User Protection Act Passed
South Korea’s National Assembly handed the “Virtual Asset User Protection Act” in the course of the plenary session on June 30. The laws combines 19 crypto-related payments which outline digital property; penalties for crimes similar to the usage of nonpublic info, market manipulation, and unfair practices; and offers extra oversight energy to the Financial Services Commission (FSC).
It is the primary home laws on digital property within the nation that defend digital asset customers and prohibit all unfair transactions. The crypto asset invoice was handed by the Political Affairs Committee of the Korean National Assembly in May and the Judicial Committee of the Korean National Assembly on June 29.
“We will prepare for the second phase of legislation for virtual assets before the law is implemented. We will actively negotiate with relevant agencies such as the Ministry of Strategy and Finance, the Ministry of Science and Technology, the Ministry of Justice, the Ministry of Administrative Security, the prosecution, the police, the Bank of Korea, and the Financial Supervisory Service, and promote various measures to establish a market discipline system.”
The FSC will oversee crypto operators and crypto custodians, the Bank of Korea can probe such crypto platforms, and insurance coverage protection, reserve funds, and record-keeping are mandatory. The guidelines will cowl digital property similar to Bitcoin, whereas tokens deemed securities fall underneath the Capital Markets Act.
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Prosecutors Seek Extradition of Do Kwon to the Country
South Korean prosecutors search extradition of Do Kwon to the nation for the 2022 Terra-LUNA disaster that worn out at the very least $40 billion of buyers’ wealth. According to prosecutors, Do Kwon may face 40 years in jail in South Korea.
Do Kwon was sentenced to four months in jail in Montenegro for boarding a flight to Dubai utilizing a pretend passport. The extradition is more likely to occur in early 2024 as he’s put in extradition custody till December.
Meanwhile, Swiss prosecutors froze crypto assets and fiat forex associated to Terraform Labs and co-founder Do Kwon in digital asset financial institution Sygnum on the request of the New York Federal Prosecutors Office and the US Securities and Exchange Commission (SEC).
Also Read: Crypto Market Outlook 2023 H2; Bitcoin, Ethereum, Altcoins To Rally Or Headwinds Coming?
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