New Virtual Asset Law Implemented by South Korea
YEREVAN (CoinChapter.com) — The South Korean financial regulator, the Financial Service Commission (FSC), will implement and enforce a new Virtual asset Law by July 19th. The FSC has notified 29 registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, that they will be required to regularly evaluate the the compliance and security of tokens listed on their platforms to protect virtual asset users.
South Korea to Enforce Virtual Asset Law by July 19
To begin with, South Korea will implement a new law focused on virtual asset user protection by July 19, according to The Korea Times. Firstly, the law introduces criminal punishments and fines for violations. As well, offenders may face jail sentences of more than one year or fines amounting to three to five times the illegal profits made. Additionally, all 29 registered crypto exchanges are required to review over 600 crypto tokens listed on their platforms. This law aims to ensure that only compliant and secure tokens are available for trading in South Korea.
South Korea Tightens Crypto Exchange Regulations
The new legislation requires exchanges to follow stricter guidelines. Initially, they must review existing tokens every six months to ensure compliance with the new standards. Subsequently, maintenance reviews are mandated every three months. These frequent evaluations should ensure compliance with standards.
Moreover, in early February, the South Korean government updated the Virtual Asset Users Protection Act. By April, the FSC had indicated plans for more stringent regulatory guidelines for new token listings on crypto exchanges.
FSC Introduces New Crypto Security Measures and Regulatory Bureau
Notably, the FSC is also working on additional regulatory guidelines for crypto transactions on exchanges. These new rules are expected to be implemented by July, alongside the user protection law.
Primarily, to manage the cryptocurrency industry more efficiently, the FSC is restructuring its organizational setup. A new bureau dedicated exclusively to virtual assets is in the works. Moreover, this bureau will oversee the entire regulatory framework for the industry. A proposal for this new bureau is set to be introduced on June 17 and reviewed by June 18.
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