1. BITBILIHome
  2. Article

South Korea Passes Inaugural Standalone Crypto Bill to Strengthen Investor Protection

• 28 views

TL;DR Breakdown

  • South Korea approved its inaugural standalone digital-asset bill, aimed at safeguarding investors and regulating the crypto sector after recent scandals.
  • The legislation empowers the Financial Services Commission to oversee digital currency operators and mandates insurance coverage and reserve funds.

Description

In a significant move to bolster investor protection in the wake of several crypto scandals, South Korea has approved its first standalone digital-asset bill. The legislation comes just over a year after the collapse of tokens created by South Korean entrepreneur Do Kwon, which contributed to a $2 trillion crypto-market rout. The new law grants … Read more

In a significant move to bolster investor protection in the wake of several crypto scandals, South Korea has approved its first standalone digital-asset bill. The legislation comes just over a year after the collapse of tokens created by South Korean entrepreneur Do Kwon, which contributed to a $2 trillion crypto-market rout. The new law grants the Financial Services Commission (FSC) the authority to oversee crypto operators and asset custodians while enabling the Bank of Korea to investigate these platforms.

The primary objective of this landmark legislation is to create a safer environment for investors participating in the digital-asset market. The act mandates the implementation of insurance coverage, reserve funds, and comprehensive record-keeping to ensure the financial stability and security of crypto operators. By introducing these regulations, South Korea aims to instill confidence and promote responsible practices within the cryptocurrency industry.

Comprehensive Coverage and Rules for Digital Assets

The newly passed bill in South Korea sets out guidelines that encompass a wide range of digital assets, with a particular focus on popular digital currencies such as Bitcoin. Under the legislation, digital-asset operators are required to obtain insurance coverage, which serves as a protective measure for investors against potential losses due to security breaches or malpractice. Additionally, the legislation mandates the establishment of reserve funds to strengthen the financial resilience of these operators.

Furthermore, the bill emphasizes the importance of record keeping in the digital-asset sector. Comprehensive and transparent record-keeping practices will enable regulatory authorities to monitor the activities of crypto operators more effectively and ensure compliance with the law. By extending the existing capital-markets law to cover tokens deemed securities, South Korea aims to address potential loopholes and provide a more robust regulatory framework for the entire spectrum of digital assets.

Recent Scandals Prompted Urgency for Crypto Regulation

The approval of the standalone crypto bill in South Korea was prompted by a series of scandals that exposed the risks inherent in the digital-asset sector. Notably, the collapse of Do Kwon’s TerraUSD and Luna coins resulted in losses exceeding $40 billion, leading to international arrest warrants for Kwon. The new legislation aims to prevent similar incidents by implementing stringent regulations and enhancing oversight mechanisms.

The urgency for stricter digital currency regulations was further emphasized when two crypto lenders with links to South Korea suspended withdrawals consecutively in June. These incidents served as a stark reminder of the potential risks and vulnerabilities associated with the digital asset industry. Moreover, a high-profile murder case in Seoul, connected to losses incurred through crypto investments, heightened public concern and put pressure on policymakers to expedite the introduction of new rules.

Conclusion

South Korea’s approval of its inaugural standalone digital-asset bill represents a crucial step towards strengthening investor protection and establishing a comprehensive regulatory framework in the crypto sector. The legislation grants regulatory authorities greater oversight and enforcement powers, ensuring that crypto operators and asset custodians adhere to stringent guidelines.

By mandating insurance coverage, reserve funds, and enhanced record-keeping practices, the new law aims to mitigate risks and foster investor confidence in the digital asset market. The regulations cover a broad range of assets, including popular cryptocurrencies like Bitcoin, while also addressing tokens classified as securities.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:South Korea Passes Inaugural Standalone Crypto Bill to Strengthen Investor Protection

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年7月3日 10:34
Next 2023年7月3日 11:44

Related articles

  • The strategy to Binance’s slow exit from Europe

    TL;DR Breakdown Binance appears to retract from Europe, but it’s strategic. Regulatory pressures from U.S. and EU are intensifying. MiCA regulation promises unified crypto licensing in the EU. Description Is Binance truly pulling the plug on Europe, or is there a deeper strategy at play? Binance, the titan of the crypto world, appears to be retracing its steps in Europe. But dig a little deeper, and their European strategy is more nuanced than meets the eye. Facing regulatory giants When you’re at the top, … Read more Is Binance truly pulling the plug on Europe, or is there a deeper strategy at play? Binance, the titan of the crypto world, appears to be retracing its steps in Europe. But dig a little deeper, and their European strategy is more nuanced than meets the eye. Facing regulatory giants When you’re at the top, as Binance undoubtedly is, it’s inevitable that regulators will come knocking. And knock, they did. From potential charges in the U.S to the meticulous scrutiny from European watchdogs, Binance is under the global spotlight. The company’s CEO, Changpeng…

    Article 2023年8月11日

  • FTX bankruptcy costs are way too expensive – Why?

    TL;DR Breakdown FTX’s bankruptcy process incurs over $200 million in professional fees due to the complexity of the case. High hourly rates for lawyers and advisors, unregulated financial system, and lack of corporate governance contribute to the costs. The expenses represent more than 2% of the platform’s reported $5 billion assets. Description The bankruptcy of the cryptocurrency exchange FTX has been a financial quagmire, accruing more than $200 million in professional fees, according to an independent audit. The complexity of untangling FTX’s global operations and the ensuing legal battles appear to be major factors driving up the costs. FTX’s burden of bankruptcy: Where the expenses stem from … Read more The bankruptcy of the cryptocurrency exchange FTX has been a financial quagmire, accruing more than $200 million in professional fees, according to an independent audit. The complexity of untangling FTX’s global operations and the ensuing legal battles appear to be major factors driving up the costs. FTX’s burden of bankruptcy: Where the expenses stem from In the aftermath of FTX’s collapse last November, a multitude of professionals including lawyers, financial…

    Article 2023年6月23日

  • Coinbase empowers the crypto world with groundbreaking advocacy group

    TL;DR Breakdown Coinbase introduces the nonprofit Stand With Crypto Alliance for pro-crypto regulations. The exchange faces legal challenges but garners notable support for clear regulations. The Alliance aims to empower the public, advocating for protective crypto laws. Description Leading crypto exchange Coinbase has taken an innovative leap forward by introducing a novel nonprofit venture to champion pro-crypto regulations on a global scale. The newly-established Stand With Crypto Alliance, spearheaded by the leading exchange, aims to drive legislative measures in the U.S. that are beneficial for the broader crypto industry, fostering both innovation and … Read more Leading crypto exchange Coinbase has taken an innovative leap forward by introducing a novel nonprofit venture to champion pro-crypto regulations on a global scale. The newly-established Stand With Crypto Alliance, spearheaded by the leading exchange, aims to drive legislative measures in the U.S. that are beneficial for the broader crypto industry, fostering both innovation and access. Operating under the 501(c)(4) status from the Internal Revenue Service, this Alliance stands as a beacon for social welfare. During a Twitter Spaces dialogue, Kara Calvert, who heads…

    Article 2023年8月15日

  • SBF to be prosecuted on original 8 charges

    TL;DR Breakdown The criminal trial of SBF, co-founder of FTX, is set to proceed with the original eight charges filed against him by U.S. prosecutors. The DoJ’s decision comes after Bankman-Fried filed a motion in the Bahamas, where he argued that many of the 13 charges he faced were not included in the original indictment, which formed the basis for his extradition. Following Bankman-Fried’s extradition, the DoJ unsealed an additional four charges in February, relating to fraud and fraud conspiracy, and introduced another charge in March alleging bribery of Chinese officials. The criminal trial of SBF, co-founder of FTX, is set to proceed with the original eight charges filed against him by U.S. prosecutors. In a court filing on June 14, the U.S. Department of Justice (DoJ) stated its intention to move forward with the charges initially levied against Bankman-Fried in December 2022. The DoJ’s decision comes after SBF filed a motion in the Bahamas, where he argued that many of the 13 charges he faced were not included in the original indictment, which formed the basis for his extradition….

    Article 2023年6月18日

  • Coinbase fires back at SEC

    TL;DR Breakdown Coinbase has hit back at the U.S. SEC telling a court that its petition for a response about new digital asset regulation was still warranted.  The lawsuit, filed by the crypto exchange last month, employed a writ of mandamus, which seeks court action against federal officials in “exceptional circumstances.” The recent Wells notice received by the crypto exchange, which signifies a pending investigation, further solidified their claims. Coinbase has hit back at the U.S. Securities and Exchange Commission in its ongoing lawsuit against the regulator, telling a court that its petition for a response about new digital asset regulation was still warranted. In a fiery 23-page filing to the Third Circuit of the U.S. Court of Appeals, Coinbase accused the SEC of speaking out of both sides of its mouth and being wrong at each end. The lawsuit, filed by Coinbase last month, employed a writ of mandamus, which seeks court action against federal officials in “exceptional circumstances.” Coinbase’s objective is to obtain a specific response from the SEC regarding its previous request for new rules concerning digital…

    Article 2023年5月25日
TOP