South Korean Regulation is Tightened as a Result of the Seoul Crypto Murder Case

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Last Updated on May 18, 2023 by Bitfinsider

A murder case involving lost cryptocurrency assets prompted politicians in South Korea to call for tighter crypto legislation, according to an article.

An argument that was thought to be tied to the losses over crypto assets resulted in the kidnapping and murder of a lady in the nation’s capital Seoul around the end of last month.

It was simply one more incident in a string of scandals involving digital assets, like the collapse of the Terra Luna ecosystem in May 2022.

The recent murder case is said to have made it more urgent for lawmakers to pass South Korea’s first crypto law. Later this month, a parliamentary vote might ratify it.

Back Hyeryun, a legislator for the opposition Democratic Party of Korea, stated that there is finally agreement on both sides of the political spectrum that legislation must be passed as soon as feasible.

The Virtual Asset User Protection Bill is the name of the newly proposed legislation. It is a single law that incorporates 19 different crypto-related policies.

The legislation specifies virtual assets, according to a draft. Additionally, it specifies punishments for violations such using secret information, manipulating the market, and engaging in unethical trading activities.

The Financial Services Commission would be given more authority to oversee cryptocurrency operators and asset custody. Such platforms could also be investigated by the Korean central bank.

The act would call for reserve funds, record-keeping, and insurance against hacking.

These limitations will apply to digital coins like Bitcoin. At the same time, government-approved tokens would be subject to current capital market law.

According to Triple A, approximately 1.9 million South Koreans, or 3.8% of the population, were cryptocurrency owners in 2021. In 2019, peer-to-peer Bitcoin trading in South Korea hit new highs of $218 million Korean Won.

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