Tuesday, September 27, 2022

South Korea Lawmakers Propose Stricter Crypto Regulations

The South Korean legislature in conjunction with the Financial Services Commission (FSC) is currently considering some sets of regulations to offset the risks and insecurities that its crypto market is privy to considering the turnout of events concerning the Terra protocol in the past week. According to the report, the proposed bill titled Virtual Property Industry Act will comprise 13 other bills which are recommended to the National Assembly.

It has become imperative for the South Korean government to deploy stringent measures, scripting regulations, and policies to protect its massive influx of crypto investors, as a result of the irregularities in the virtual assets market. 

Reports have it that the recent crash of the Terra Network has affected approximately 200,000 crypto investors in South Korea. The proposed regulation will be stricter than the Capital Markets Act, which currently governs the stock exchange market of the nation.

One of the provisions of the proposed virtual assets bill stipulates that an offender can be jailed for manipulating the market price, raising false orders, or engaging in any crime that is spectacular to the crypto sphere. The punishment is said to be higher than what is applicable in the Capital Markets Act.

According to the report, the bill also includes that, in the future, algorithm coins such as the UST stablecoin, which lost its market cap of over 50 trillion won and 200,000 subscribers in one week, are meant to exit the crypto market, protecting investors from the repetition of such related occurrences in the future.

The licensing procedure for accrediting crypto exchanges is also expected to be stiffened, ensuring that blockchain service providers educate their subscribers on the risks and detailed volatility that is peculiar to their digital asset product.

An example of the LUNA coin was also sighted, adding that a large number of individuals were affected by the coin’s crash because they were not pre-informed about the teaming risks of the digital asset.

In closing, the report noted that any crypto service provider that sells a large amount of coin and fails to issue a public notice about it will be subject to criminal punishment and “compensation for damages and fines”.

In a report yesterday, the National Assembly is considering summoning Do Kwon, co-founder of Terra to a hearing, requesting detailed information about the events around the crash of his coins in the past week.

This accounts for the measures and strategies that the South Korean government is deploying to ensure the safety of its crypto market.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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