On Friday South Korea’s National Assembly passed the “Act for the Protection of Virtual Asset Users”. It covers protection such as crypto custody segregation, regulation of unfair trading practices and gives regulators powers to supervise and take enforcement actions against crypto firms. The law comes into force in July 2024.
According to the Financial Services Commission, the legislation adheres to the principle of same activity, same risks, same rules. It also aims to be consistent with legislation in other parts of the world. There’s a desire to implement legislation gradually. Now these laws have been enacted, the next phase will cover the issuance and distribrution of tokens, including the disclosures required.
As context, the May 2021 collapse of Terra was the primary trigger of the crypto crash. And Terra was founded and largely operated out of South Korea.
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