Lawmakers in South Korea are pushing for stricter regulation of digital assets following a shocking murder case linked to cryptocurrency. Bloomberg reported that a Korean woman was kidnapped and killed in an incident related to crypto losses. The country’s inaugural standalone crypto bill, the Virtual Asset User Protection Bill, could undergo parliamentary vote as early as this month. The legislation consolidates 19 different crypto-related measures into a single comprehensive bill, which establishes legal definitions for virtual assets and introduces penalties for offenses such as insider trading and market manipulation. The bill also grants the Financial Services Commission the authority to supervise cryptocurrency companies and oversees the custody of digital assets. Mandatory insurance coverage aims to provide a safety net for digital asset firms in case of cyberattacks or breaches, while stricter rules on reserve funds and account keeping ensure greater transparency and accountability within the cryptocurrency ecosystem. The bill will subject cryptocurrencies like Bitcoin to the proposed regulations, while tokens categorized as securities will continue to be governed by existing capital-markets laws. The introduction of the Virtual Asset User Protection Bill comes at a time of growing apprehension surrounding the crypto industry in South Korea, highlighted by the financial crimes committed by Do Kwon, co-founder and CEO of Singapore-based Terraform Labs, and the collapse of the Terra ecosystem.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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