South Korea is setting a new standard for virtual asset regulation with new legislation that safeguards users and prohibits unjust trading practices.
Virtual asset traders in South Korea will now face stiff penalties for unfair trading, such as stock price manipulation, under the revised “Capital Market and Financial Investment Business Act.”
The South Korean government has taken a significant step towards regulating cryptocurrency with the introduction of specific measures following the enactment of the Specific Financial Transaction Information Act.
The South Korean government is taking steps to protect virtual asset users by introducing new legislation that establishes a framework for imposing fines and liability for unfair trading.
Virtual asset providers must now take steps to protect users from hacking and system failures, including maintaining records of transactions, securing client deposits, obtaining insurance, and participating in mutual assistance programs.
The Financial Services Commission has the authority to impose penalties of up to twice the number of illicit earnings for unfair trading practices, concealing pertinent information, artificially inflating prices, or engaging in illicit business transactions.
The South Korean government is cracking down on unfair trading in the virtual asset market with new legislation that imposes steep fines and potential criminal penalties.
A fixed penalty of 4 billion won has been established for cases of stock price manipulation where no improper gains were made or the amount cannot be determined.
Do Kwon is in serious trouble. Do Kwon, the co-founder of Terraform Labs, is facing extradition to South Korea after receiving a four-month prison sentence in Montenegro for forging a passport.
The South Korean government believes that Kwon played a role in the collapse of Terra, an algorithmic stablecoin that lost its peg to the US dollar in May 2022.
The collapse of UST triggered a wave of liquidations that wiped out billions of dollars in value, forcing Celsius, Voyager, and Three Arrows Capital to declare bankruptcy.