March 29, 2024

South Korean authorities are going to tighten the regulation of cryptocurrencies

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South Korean authorities are going to tighten regulation of cryptocurrencies

South Korea Financial Services Commission (FSC) and the National Assembly are working on a bill that would allow regulators to punish crypto exchanges for unfair trading.

The new bill describes suchviolations such as taking advantage of hidden information, price manipulation and crypto fraud. Currently, 14 different proposals regarding cryptocurrencies and digital assets are being considered in the National Assembly of South Korea.

Member of the National Assembly who wishedremain anonymous, told reporters that the adoption of the law in the FSC version is necessary, taking into account the local peculiarities of regulation of cryptocurrencies:

"In the United States, the Securities and Exchange Commission"(The SEC) has a wide range of powers and can punish unfair trading in digital assets without specific legislation, but in Korea, relevant legislation is absolutely necessary."

Details of specific penalties forthere is no abuse, but it is expected that they will be written in a way that synchronizes supervision and punishment at a level similar to penalties for offenses in the traditional financial industry.

After the collapse of the Terra project last springSouth Korean authorities intend to strengthen legislation and tighten regulation of digital assets, paying special attention to the safety of crypto investors. Last week, the FSC warned that it intends to monitor investors' transactions with crypto assets worth more than 100 million won ($70,000). Earlier, the South Korean prosecutor's office announced its readiness to buy software for tracking dubious crypto transactions.