South Korean legislators intend to ramp up legislation, putting specific emphasis on the protection of investors in virtual assets and harshening penalties for unfair trade acts in the industry.
The Financial Services Commission and the National Assembly are working to pass a bill that would enable financial authorities to monitor and punish unfair trade practices such as the use of undisclosed information, price manipulation and fraud while supervising crypto exchanges.
The legislation bears an emergent character: While there are already 14 different proposals regarding crypto and digital assets circulating in the National Assembly and the ambitious and comprehensive Digital Asset Basic Act in the making, this one should guarantee more investor protection starting from 2023.
While there are no details on the specific penalties for various malpractice, it is expected that they will be designed in order to synchronize the supervision and punishment at a level similar to that of the traditional financial industry.
