The South Korean National Assembly approved a total of 19 crypto bills to fight against bad actors in the crypto sector.
South Korea is a very big market for the crypto sector. In this country, there are clear & proper laws that regulate crypto companies & keep illegal activities away. Despite better laws, South Korean lawmakers are on the path to introducing a more perfect crypto regulatory framework in the country.
On 30 June 2023, South Korean local media reports confirmed that the South Korean National Assembly passed the Virtual Asset User Protection Act, which includes 19 crypto-dedicated bills.
Under the new framework, there are several measures to fight against every kind of potential crypto crime e.g. money laundering, insider trading, price manipulation, unsafe customer fund transaction, punishment over crypto crime, etc.
Lee Suh Ryoung, the chief secretary general of the Korea Blockchain Enterprise Promotion Association, spoke with Bloomberg and shared personal opinion following the newly approved crypto bills.
Ryoung said that such new rules are surely better for the crypto sector regulatory efforts but it’s not good that they introduced some traditional financial rules on this crypto sector.
As per reports, new rules will bring more clarity over the nature of crypto assets, which means regulatory bodies will be able to easily distinguish security crypto tokens & commodity crypto tokens.
In mid of 2021, the South Korean government faced huge criticism because of the Terra (Luna) crypto project’s downfall. The majority of the critics alleged that the South Korean government was able to keep crypto activities under a regulated system but they ignored & that is why a very big crypto scam happened in the crypto sector. At present South Korean enforcement agencies are waiting for the extradition of the Terra crypto project co-founder Do Kwon to initiate the proper investigation over Terra crypto fraud.
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