The South Korean government has introduced a new law called the "Law on the Protection of Users of Virtual Assets," which will come into effect from July 19. The main objective of this law is to protect #cryptocurrency users from various forms of market manipulation, illegal transactions, and misuse of confidential information.
Restriction on Market Manipulation and Illegal Transactions
The new law introduces strict measures against market manipulation, illegal trading, and misuse of non-public information about virtual assets. Violations of these rules may result in criminal sanctions, including imprisonment and fines of up to five times the amount of unjust enrichment.
Penalties and Accountability
Enforcement agencies may impose fines after the Financial Services Commission (FSC) files charges with the Attorney General's Office and receives a notification of the investigation results. Fines may be imposed based on the profits from unauthorized activities, and in the case of higher amounts, a lifetime imprisonment and significant fines may be imposed.
Liability Insurance
Operators of virtual assets are required to obtain insurance or have sufficient financial coverage for accidents, such as hacking or computer failures. These measures are aimed at ensuring user protection and minimizing financial risks associated with cryptocurrency operations.
Notice:
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