South Korea’s first crypto law, the “Virtual Asset User Protection Act,” goes into effect.

South Korea's "Virtual Asset User Protection Act" officially took effect today (July 19), marking the country's first dedicated cryptocurrency legislation. This law focuses on protecting users' cryptocurrency and deposits while regulating market manipulation, unfair trading practices, and other related activities.

The "Virtual Asset User Protection Act" was passed by the South Korean National Assembly on June 30 last year and officially announced on July 18 of the same year. It was scheduled to go into effect on July 19 this year, after a one-year grace period to allow virtual asset service providers (VASPs) to review and revise their systems and monitoring measures to comply with applicable laws and regulations.

According to the Financial Services Commission (FSC), the act includes 19 provisions related to cryptocurrencies, with the key three being:

1. Introducing protection mechanisms for users' deposits and virtual assets.
2. Establishing penalties for illegal activities such as "trading on non-public information," "market manipulation," and "unfair trading."
3. Designating the FSC as the supervisory authority for VASPs, empowering it to oversee, inspect, and sanction related businesses, and investigate and take appropriate measures against violations.

This article is from the blockcast:https://blockcast.it/2024/07/19/south-korea-first-crypto-law-aimed-to-protect-users-going-into-effect-today/

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AIC Team

2024/7/22