The South Korean government has decided to impose strict regulations on cryptocurrency and digital assets. This decision did not come overnight. Last month, a horrible incident took place in the country, a woman was kidnapped and murdered over a dispute that was related to cryptocurrency. This incident brought a lot of hatred and outrage in the country.
New Bill to be Made by Merging 19 Existing Bills
The regulators are deciding to bring a single cryptocurrency bill named as Virtual Asset User Protection Bill by merging 19 different cryptocurrency bills. This will lead to stricter regulation. This bill may pass in the parliament at the end of this month. The opposition is also putting pressure on the government to pass the bill soon. Back Hyeryun, the opposition lawmaker said that there is a need to pass a law as soon as possible.
According to the draft of the new bill, there will be serious penalties for insider trading and market manipulation. The new bill will grant power to the Financial Services Association to oversee companies involved in crypto and the custody of assets. The new rule will also make it mandatory for digital asset companies to have insurance that would give them protection against hacks and other such criminal activities.
Also read: Bitcoin Miners Panic Sell $55 Million in BTC as Price Plummets to Critical Support Level
Cryptocurrency has always been viewed with caution in South Korea as there is a great potential for its misuse with regard to criminal activities. The recent murder case has also opened the eyes of the authorities and if not regulated properly, it can lead to serious repercussions. If the bill is implemented properly, South Korea can set an example to other countries to improve and amend their regulatory policies which would eventually benefit everyone.
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