Depending on the severity of the offense, those who made illegal profits of more than KRW 5 billion could be sentenced to life in prison.

The Korean government has taken additional measures to protect crypto investors from unfair market activities and criminals by introducing higher fines and penalties for violating certain rules.
According to the press release, crypto criminals face a minimum of #one year in prison or a fine of three to five times the amount stolen. Depending on the severity of the offense, those who made illegal profits of more than KRW 5 billion ($3.8 million) could be sentenced to life in prison or a fine of twice the amount stolen.
The new measures are part of the Virtual Asset User Protection Act, which will come into effect on July 19, 2024. The government passed the law on July 18, 2023.
The new law protects the assets of #cryptocurrency users and investors by placing a duty on cryptocurrency operators to protect user deposits. These deposits must be managed by a public trust, such as a bank, for reasons of regulatory compliance, stability and specialized management systems.
Cryptocurrency operators must keep at least 80% of user deposits in #cold storage to mitigate the effects of hacking or computer failure. In addition, such companies must insure themselves or create a reserve fund with agreed compensation limits to protect against misuse.
Companies are prohibited from hiding information about crypto-assets, engaging in market manipulation or illegal trading.
In addition, the new law obliges the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) to supervise and inspect digital asset businesses, as well as investigate and take action in cases of non-compliance.
The FSC can supervise virtual asset companies' compliance with the Virtual Asset User Protection Act and inspect the status of their business and assets.

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