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South Korea Passes Virtual Asset User Protection Act

 1 year ago
source link: https://fintechranking.com/2023/07/01/south-korea-passes-virtual-asset-user-protection-act/
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South Korea Passes Virtual Asset User Protection Act

South Korea’s National Assembly took a significant stride on June 30 by approving the Virtual Asset User Protection Act, signaling the country’s first major step towards establishing a comprehensive legal framework for virtual assets.

The newly passed bill aims to regulate unfair trade practices and provide essential safeguards for cryptocurrency investors, according to local news agency SBS Biz.

The legislation consolidates a total of 19 crypto-related bills, streamlining the regulatory landscape by introducing a unified framework that defines digital assets and enforces penalties for illicit trading activities. These activities encompass the use of undisclosed information, market manipulation, and other unfair practices prevalent in the crypto space.

One key aspect of the Virtual Asset User Protection Act is its prioritization of virtual assets with securities characteristics, aligning them with the existing Capital Market Act. By doing so, the legislation establishes a foundation for imposing penalties and holding individuals accountable for damages caused by unfair trading activities within the cryptocurrency market.

To safeguard investors, virtual asset service providers (VASPs) in South Korea are now required to assume responsibility for users’ deposits and offer insurance coverage. These measures are essential for ensuring user protection against potential threats such as hacking incidents, system failures, and other associated risks.

Read more: Cointelegraph


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