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South Korea Drafts Six Bills on Cryptocurrency Regulations

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Crypto market has interested many investors looking at the returns. However, it is an extremely volatile and uncertain industry. To avail its benefits while avoiding hacks and frauds, clarity and regulations are a must.

Late last year, South Korea intended to impose a ban on cryptocurrency operations. But, now the country is taking active steps to regulate the crypto space. Recently, South Korea’s top financial regulator has shared information regarding six cryptocurrency-related bills that have been submitted to the National Assembly. Reportedly, the recent bill is designed to protect the rights of crypto owners and to provide safety and reliability of crypto transactions.

A spokesperson for the regulator stated, “There are six proposals made by the National Assembly members … [however] there is no crypto-related bill submitted by the FSC to the National Assembly.” The bill has different proposals for crypto regulation, all of them are addressing user protection clauses such as damage compensation, prohibition of money laundering and market manipulation, use of nonpublic information, and disclosure requirements.

As of now, no follow-up measures have been announced. The first bill is an amendment to the Electronic Financial Transactions Act which was introduced in July last year. The bill recommends definitions for the virtual currency, and all the terms related to it. The bill also proposes a few steps to protect crypto users including restricting transaction methods.

The next two bills state that it is required to have approval from the Financial Services Commission for a virtual currency entity. The other bill proposes to regulate cryptocurrency transactions, and also seeks the FSC registration of those involved in the transactions.

Further, the fourth bill is the Act on the Reporting and Utilization of Specified Financial Transaction Information. The sixth bill is called the Digital Asset Trade Promotion Act. The bill states, “The purpose of this law is to protect the rights of digital asset owners and to ensure the safety and reliability of digital asset transactions and to contribute to the development of the national economy by stipulating matters concerning the transactions of digital assets.”

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