Violating cryptocurrency laws in South Korea could soon carry serious penalties.
A new law to protect users of virtual assets, set to take effect in July, prohibits manipulation of the #cryptocurrency market, certain types of transactions, and the use of undisclosed confidential information about #digital assets.
According to South Korea's Financial Services Commission (FSC), violating these rules and making more than KRW 5 billion (US$3.76 million) in illegal profits can result in life in prison. They can also be fined three to five times the amount of unjustified profits made as a result of the violation.
The law also provides that the FSC has the power to supervise and sanction cryptocurrency companies. The draft rules state that cryptocurrency operators such as exchanges must store at least 80% of the value of users' crypto assets in cold storage away from the internet.
According to a report by Korea Economic Daily, Lee Bok-hyun, head of South Korea's Financial Supervisory Service (FSS), announced earlier this month that he will travel to the U. S. in the second quarter of this year to speak with U. S. Securities and Exchange Commission (SEC) Chairman Gary Gensler about the global implications of the SEC's cryptocurrency policy.
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