South Korean Regulators to Harden Punishments for Crypto Fraud Practices

The concern of not being able to curb the impact of an unfortunate incident such as the Terra-Luna incident to protect investors, South Korean legislators are now considering setting up law with the aim of toughening punishment of “unfair trade in virtual assets.”

This implies the push to ensure the “protection of investors” trading in digital currencies. 

According According to local reports, the Financial Services Commission and the National Assembly are working together to pass a bill which will monitor and punish unfair trade practices like price manipulation, fraud, and using unknown information. It also supervises crypto exchanges.

The National Assembly has more than 12 proposals relating to crypto and digital assets. Because it would take the opposition longer to agree on such a large bill, financial authorities would first consider legislation that would protect investors.

“In the US, since the Securities and Exchange Commission (SEC) exercises a wide range of powers, it is possible to punish unfair trade in virtual assets without separate legislation, but in Korea, related legislation is absolutely necessary. In the future, virtual asset exchanges will also be monitored and supervised by financial authorities,” said an unnamed official from the National Assembly.

There aren’t any details about the exact punishments for these types of malpractices. However, it is possible that the financial authorities will design the punishment to look similar to the one in place for traditional financial industry employees. This would allow for proper supervision and discipline.

It is clear that South Korea is keen to expand its digital currency ecosystem. This is why it is currently considering this legislation. To demonstrate this, South Korea has revealed plans to provide digital identities using blockchain and smartphones to citizens by 2024 in order to accelerate its economic development.

Blockchain.News reported that the South Korean government claimed that digitalization will lead to the growth of the economy. digital identities A smartphone with embedded technology would support data development.

Source: Shutterstock



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