In South Korea, Virtual Asset Service Providers (VASPs) are now required to take responsibility for customer deposits
South Korea has passed a new cryptocurrency bill called the Virtual Asset User Protection Legislation, which is designed to regulate unfair trading practices and protect cryptocurrency investors.
The law combines 19 cryptocurrency-related acts, creating a single bill that defines digital assets and imposes penalties for illegal business methods, such as exploitation of undisclosed information, market manipulation, and other unfair business methods in the cryptocurrency industry. cryptocurrencies.
The Capital Market Law is applied for the first time to virtual assets with the character of securities under the new regulations. The Law also attempts to create a basis for imposing fines and liability for losses caused by unfair cryptocurrency trading.
In South Korea, virtual asset service providers (VASPs) are now required to take responsibility for customer deposits and offer insurance to protect investors from risks such as hacking and computer failures. A fixed-term prison sentence of at least one year or a significant fine can be imposed for violating the new guidelines.
For unfair trade profits, the Financial Services Commission has the authority to impose a fine that is twice that amount. The news comes after Terraform Labs founder Do Kwon, behind the implosion of the Terra ecosystem last year, was sentenced to four months in prison by a court in Montenegro after being found guilty of using a false passport.
