South Korea Passes Digital Assets Bill

The South Korean Parliament passed a law to protect users of digital assets. The impetus for his approval was the collapse of the Terra ecosystem, which was supported by a citizen of the country, Do Kwon, writes Bloomberg.

The document brought together 19 different bills related to cryptocurrencies. It introduces the concept of “digital assets” and defines liability for offenses such as the use of insider information, market manipulation and unfair trading practices.

The law endows FSC and the Bank of Korea with the authority to oversee operators and custodians of the cryptocurrency market.

The document requires the availability of insurance coverage, reserve funds and the organization of transaction accounting. The rules apply to assets like bitcoin, while existing capital markets legislation applies to security tokens.

“We welcome the authorities’ attempt to restore order. But the law remains focused on Tradfi […]which may be more likely to suppress the industry than to promote it, Lee Soo Ryong, Secretary General of the Korea Blockchain Enterprise Development Association in Seoul, said in a statement.

Baek Hye-yun, Chairman of the National Policy Committee of the South Korean Parliament, estimates that the new set of rules is focused on protecting investors and will be gradually expanded to provide comprehensive oversight.

In January 2023, it became known about the plans of the Ministry of Justice of South Korea to introduce a system for tracking crypto transactions to combat money laundering.

In April, the media reported that the local central bank would receive permission to investigate and monitor activities related to the circulation of digital assets of organizations.

Recall that the co-founder and CEO of Terraform Labs was found guilty in Montenegro of forging documents while trying to leave the country. Kwon also faces jail terms in South Korea and the United States.

The South Korean Parliament passed a law to protect users of digital assets. The impetus for his approval was the collapse of the Terra ecosystem, which was supported by a citizen of the country, Do Kwon, writes Bloomberg.

The document brought together 19 different bills related to cryptocurrencies. It introduces the concept of “digital assets” and defines liability for offenses such as the use of insider information, market manipulation and unfair trading practices.

The law endows FSC and the Bank of Korea with the authority to oversee operators and custodians of the cryptocurrency market.

The document requires the availability of insurance coverage, reserve funds and the organization of transaction accounting. The rules apply to assets like bitcoin, while existing capital markets legislation applies to security tokens.

“We welcome the authorities’ attempt to restore order. But the law remains focused on Tradfi […]which may be more likely to suppress the industry than to promote it, Lee Soo Ryong, Secretary General of the Korea Blockchain Enterprise Development Association in Seoul, said in a statement.

Baek Hye-yun, Chairman of the National Policy Committee of the South Korean Parliament, estimates that the new set of rules is focused on protecting investors and will be gradually expanded to provide comprehensive oversight.

In January 2023, it became known about the plans of the Ministry of Justice of South Korea to introduce a system for tracking crypto transactions to combat money laundering.

In April, the media reported that the local central bank would receive permission to investigate and monitor activities related to the circulation of digital assets of organizations.

Recall that the co-founder and CEO of Terraform Labs was found guilty in Montenegro of forging documents while trying to leave the country. Kwon also faces jail terms in South Korea and the United States.