Lawmakers In Korea Have Rallied Towards Crypto Rules In May

South Korea

Legislators in South Korea have been pushing to bring in stricter regulation of digital assets in the wake of a murder that involved several such digital assets.

According to a Bloomberg report from 18th May, a woman in the country was abducted on 29th May and was later murdered in what seems to be a dispute that stemmed from cryptocurrency-related losses.

This simply adds to a string of digital asset-related scandals that includes Do Kwon’s Terra ecosystem collapsing in May 2022. The recent violent murder has also added a lot of urgencies for the legislators to expedite the first standalone crypto bill of the country- which could further be passed through a parliamentary vote later in the month. 

Korea Legislators Have Started Implementing New Laws

Back Hyeryun, one of the legislators from the opposition Democratic Party of Korea, informed the press that there was finally a consensus on both ends of the aisle that they needed to get a law that would stop the scandals up to a certain extent.

She added that there were just too many issues, which made it necessary for the government to fix one thing first- investor protection. This new bill will be referred to as the Virtual Asset User Protection Bill, which would wrap itself up a total of 19 different crypto-related measures into a single standalone bill. 

According to the draft version of this bill, the legislation definitely outlines quite a few clear legal definitions of assets, whilst imposing penalties for offenses like market manipulation and insider trading. Also, the new bill would grant the Financial Services Commission in Korea the to oversee the custody of assets and crypto companies.