According to CryptoPotato, the South Korean government has increased fines and penalties for violations of certain regulations to protect cryptocurrency investors from unfair market practices and criminals. According to a press release, cryptocurrency criminals may face more than one year in prison or a fine of three to five times the amount stolen. Depending on the severity of the crime, individuals who have made illegal profits of more than 5 billion won (about 3.8 million US dollars) may be sentenced to life imprisonment or a fine of twice the amount stolen. The new measures are part of the Virtual Asset User Protection Act and are expected to take effect on July 19, 2024. The South Korean government enacted the law on July 18, 2023. The new law protects the assets of cryptocurrency users and investors and requires cryptocurrency business operators to assume responsibility for protecting user deposits. These deposits will be managed by institutions with public trust, such as banks, because they have compliance, stability and specific management systems. Cryptocurrency businesses must store at least 80% of user deposits in cold storage to mitigate the impact of hacker attacks and computer failures. Such companies must also prepare for vulnerabilities by signing insurance or accumulating reserve funds and setting compensation limits. Business operators are prohibited from concealing information about crypto assets, engaging in market manipulation and illegal trading activities. In addition, the new law requires the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) to supervise and inspect digital asset businesses, investigate and take action on violations.