South Korean Regulator Plans to Enforce Virtual Asset Act, Schedules Meeting with US’ Gary Gensler
The Virtual Asset User Protection Act will be implemented by the South Korean Financial Services Commission on July 19, as reported by local media. The act prohibits market manipulation, illegal trading, and the use of undisclosed important information related to virtual assets, in accordance with the enforcement decree and supervisory regulations.
Furthermore, starting in the second half of the year, individuals who make illegal profits exceeding 5 billion won may face a maximum penalty of life imprisonment. The Financial Services Commission will notify the Attorney General of the charges, and fines may be imposed accordingly.
Virtual asset exchanges and other business operators are required to manage the deposits made by virtual asset users through banks when buying and selling virtual assets. Additionally, these business operators must securely store over 80% of the economic value of users’ virtual assets separately from the Internet.
In another development, the Financial Supervisory Service (FSS), South Korea’s chief financial regulator, has sought advice from the U.S. Securities and Exchange Commission (SEC). Lee Bokhyun, the head of FSS, has presented a business plan for 2024, which includes a visit to New York to meet with SEC Chairman Gary Gensler.
The FSS has been actively taking steps to strengthen regulations in the crypto industry in recent months. Seoul has plans to establish two special bureaus to oversee the crypto market. Additionally, in mid-December, the Financial Services Commission published a legislative notice outlining the provisions of the upcoming cryptocurrency law, expected to be implemented this summer. Crypto platforms will be subject to several requirements as a result.
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