Violating crypto laws in South Korea could soon come with a severe penalty.
The country’s new ‘Virtual Asset User Protection Act’, expected to come into effect in July, bans manipulation of the crypto market, certain types of trading and the use of undisclosed material information about digital assets.
Breaking these rules and making an illegal profit of more than five billion won (about $3.76 million) could result in a life sentence, according to South Korea’s Financial Services Commission (FSC). The government may also impose a fine equal to three to five times the amount of unjust enrichment earned from the violation.
The law also stipulates that the FSC has the right to supervise and sanction crypto companies. A draft of the regulations stated that crypto business operators, such as exchanges, must store at least 80% of the value of their users’ crypto assets in cold storage, off the internet.
Lee Bok-hyun, head of South Korea’s Financial Supervisory Service (FSS), announced earlier this month that he plans to travel to the US in the second quarter of the year to talk with Gary Gensler, chairman of the US Securities and Exchange Commission. SEC), on the impact of the SEC’s crypto policy on the world, according to a report by The Korea Economic Daily.
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