South Korea Takes Bold Measures Against Crypto Crimes. 🇰🇷👮🏻♂️👨🏻⚖️
In response to the 2022 crypto industry crisis involving Terraform Labs and its founder, Do Kwon, South Korea has enacted the Virtual Asset User Protection Act, showcasing its commitment to safeguarding the virtual asset market. The legislation, enforced since July 19, 2023, imposes strict measures to combat crimes within the crypto industry.
The primary aim of the Virtual Asset User Protection Act is to establish order in the virtual asset market and combat illicit activities within the industry. South Korea's proactive approach underscores the importance of ensuring user protection and market integrity.
The law outlines severe penalties for offenders, including fixed-term imprisonment of over one year or fines ranging from three to five times the amount of unjust enrichment. Notably, individuals involved in significant illegal profits exceeding 5 billion won may face life imprisonment, emphasizing the gravity of crypto-related crimes.
The Financial Services Commission (FSC) is granted the authority to impose fines equal to twice the amount of unfair profits. This additional layer of oversight ensures a stringent regulatory framework, with fines applicable after notifying the Prosecutor General and receiving the investigation's outcome.
The law encourages collaboration between the FSC and the Financial Supervisory Service to investigate unfair trading practices. Violations may result in various consequences for crypto businesses, including suspension, correction orders, complaints, or notifications to investigative agencies.
South Korea's strong stance, through the Virtual Asset User Protection Act, signals a commitment to accountability in the crypto landscape, acting as a deterrent against crimes and showcasing dedication to user protection. This legislative move positions South Korea as a leader in global efforts to regulate the virtual asset market.
