South Korea’s financial authorities will initiate the second stage of virtual asset legislation as early as this month.
According to the local news source, the Financial Services Commission convened a digital asset meeting on the 3rd where the second stage of legislation that can fully encompass virtual assets as an institutional system was reviewed.
An official from the authorities said, “At the TF the day before, there was a discussion about what should be included in the second-phase legislation.”
This meeting follows shortly after the Virtual Asset User Protection Act, which regulates unfair business practices and protects users was passed on June 30.
The first bill relating to virtual assets includes provisions such as “protecting the assets of virtual asset users,” “regulating unfair trade practices in the virtual asset market,” and “authorizing the financial authorities to monitor and penalize participants in the virtual asset market.”
South Korea’s FSC is debating the second-stage legislation since the National Assembly approved the Virtual Asset User Protection Act and requested research services for the second-stage legislation as a supplementary opinion, the local agency reported.
South Korea’s Push For Crypto Regulation
Additionally, the National Assembly mandated that the Financial Services Commission submit and report strategies, such as research services, to the pertinent standing committee in order to resolve conflicts of interest that virtual asset operators produce during the issuing and distribution of virtual assets.
As reported by TronWeekly, the historic legislation approved on June 30 amends the “Act on Capital Market and Financial Investment Business,” which calls for a penalty of up to twice the profits generated through unfair trading, such as manipulating stock prices.
The creation of a law governing virtual assets, or cryptocurrencies, in South Korea was a significant milestone because it was the first such law to be passed since the Specific Financial Transaction Information Act.
The bill in question reportedly integrates 19 crypto-related actions in addition to market manipulation, including identifying digital assets and implementing fines for illegal trading practices including abusing secret information, among other things.
Meanwhile, in other parts of Asia, Japan has relaxed its trading rules and tax breaks for crypto firms, while Singapore is adopting a more cautious stance.