South Korea passes cryptocurrency bill to combat unfair trade

South Korea’s government is taking steps to protect cryptocurrency investors from explosions like Do Kwon’s Terra Ecosystem by passing a new crypto bill.

On June 30, the National Assembly passed the Virtual Asset User Protection Act. Local news agency SBS Biz said the bill is designed to regulate unfair trade practices and protect crypto investors informed of,

alleged law Integrated The 19 crypto-related bills provide a unified bill defining digital assets and imposing penalties for illegal trading activities in crypto such as using undisclosed information, market manipulation and other unfair trading practices.

According to local media, the main point of the Virtual Asset User Protection Act is to apply the Capital Markets Act first to virtual assets that are securities in nature. The law also aims to establish a basis for imposing fines and liability for damages caused by unfair crypto trading.

To protect investors, Virtual Asset Service Providers (VASPs) in South Korea are now reportedly required to take responsibility for users’ deposits and provide insurance. Such measures are necessary to ensure the safety of the user against hacks, computer failures and other risks.

According to the SBS Biz report, violation of the new rules can lead to imprisonment for a fixed term of at least one year or a heavy fine. For example, the Financial Services Commission may impose a fine equal to twice that amount for gains derived from unfair trading.

Connected: Do Kwon denies fake passport, blames ‘Chinese’ agency: report

The news comes shortly after Terraform Labs founder Do Kwon was sentenced by a court in Montenegro to four months in prison after being found guilty of using a false passport. The executive also faces an arrest warrant in South Korea for allegedly violating the country’s capital markets law.

South Korean prosecutors recently claimed that the collapse of Terra’s token was the largest ever case of financial fraud or financial securities fraud in the country.

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