South Korean lawmakers seek tough punishments for crypto fraud

The National Assembly of South Korea is collaborating with the country’s Financial Services Commission on a bill that seeks to introduce greater oversight of crypto firms and introduce tough punishment for unfair trade practices. 

South Korea is ramping up crypto legislation

According to a report published by The Dong-a Ilbo, authorities in South Korea are beginning to prioritize legislation that focuses on crypto exchanges and on punishing those involved in fraudulent activities, insider trading, and market manipulation.

This new legislation will reportedly create a legal basis that will enable greater monitoring of the crypto industry and help identify bad actors. 

As of now, more than 10 bills related to virtual assets are circulating in the national assembly. These bills cover a wide range of topics including the establishment of a virtual asset industry development plan and the upcoming Digital Asset Basic Act.

However, the local media has indicated that it will be long before the opposition and the ruling party agrees on these bills. As for the legislation in question, it could come into effect as soon as 2023. 

Kim So-young, Vice Chairman of the Financial Services Commission, stated in September, “We must regulate the necessary matters and make up for and improve the deficient matters as the situation changes.”

This news comes a week after local media reported that the FSC will start monitoring crypto whales with assets of over 100 million won ($70,000) in a bid to limit attempts to launder money through digital assets. 

The Do Kwon connection

It is no secret that the aftermath of Terra’s collapse has caused regulators and lawmakers in South Korea to take a tougher stance on the industry. 

The fact that Terraform Labs co-founder Do Kwon has been avoiding law enforcement agencies, did not help in containing the fallout from this catastrophic event. 

South Korean law enforcement agencies have accused Kwon of being on the run and have moved to cancel his passport as well as engage Interpol to issue a red notice.