Financial authorities in South Korea prepares for the second section of digital asset laws this month to manage the remaining facets of the crypto market. The transfer comes as South Korea’s National Assembly handed the “Virtual Asset User Protection Act” final week that defines digital property, penalties for unfair transactions, and provides oversight energy to the Financial Services Commission (FSC).
The FSC concluded a digital asset non-public joint process power (TF) working group assembly on Monday to stipulate laws for totally incorporating digital property into the institutional system. The second section focuses on regulating digital asset issuance and financing by digital asset operators, options to conflicts of curiosity within the issuance course of, stablecoin regulatory frameworks, and different remaining facets of the crypto market.
“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.”
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South Korea Passes Virtual Asset User Protection Act
South Korea’s National Assembly passed the “Virtual Asset User Protection Act” on June 30, which mixes 19 crypto payments from legislators. It consists of defining digital property; penalties for crimes resembling the usage of nonpublic info, market manipulation, and unfair practices; and making insurance coverage protection, reserve funds, and record-keeping obligatory.
It additionally provides the Financial Services Commission authority to supervise and examine digital asset service suppliers and the Bank of Korea can request knowledge from service suppliers.
South Korea has been strengthening crypto oversight and safety after the May 2022 Terra-LUNA disaster. On Tuesday, the Digital Asset eXchange Association (DAXA), an alliance of South Korea’s high 5 home crypto exchanges, broadcasts integrating an alert system notifying customers about irregular buying and selling.
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