South Korean agency says cryptocurrency investor protection law is a priority

A possible cryptocurrency investor protection law has become a priority in South Korea following the collapse of the Terra Ecosystem (LUNA) in May 2022, erasing the legacy of countless fans of the project in the country.

The new regulations should increase penalties for people who use cryptocurrencies to commit crimes and leave customers unattended.

This regulation has drawn attention after South Korea was identified as the home of the creator of the ecosystem created by Luna Crypto creator Do Kwon, who is now on the run.

South Korea to introduce cryptocurrency investor protection law

Some cryptocurrencies have no company or government responsible for their emissions, as many countries are not yet regulated.

This is a new concept of money as fiat currency issued by the central bank has clear rules and is legal tender in all countries.

Cryptocurrencies are more ruleless and nearly impossible to regulate due to the decentralized nature of crypto, so governments have focused on watching which companies act as intermediaries in the industry to apply the rules they think are important there.

As a result, South Korea has prepared a so-called cryptocurrency investor protection law to blame for the fall of the earth (LUNA), local newspaper Donga reported on Tuesday (1).

Projects being created by the National Assembly

The new project draws attention to its approach to cryptocurrencies as financial assets, which should be under the supervision of South Korea’s CVM.

As a result, the country’s lawmakers are already talking to the agency about creating rules to prevent the industry from taking a financial hit, with companies operating without registration and with strict penalties for violating the good practices that will be established.

These practices include market manipulation, the use of privileged information, and financial pyramids.

With the new proposal, South Korea already has more than 10 banknotes to consider in the cryptocurrency market, a sign of increased pressure in the country following the demise of cryptocurrencies created by South Korean-born people.

But new laws to protect investors are one of the bright spots and should be prioritized in South Korea’s parliament, signaling that the country should no longer go unpunished.

Source of information: compiled from LIVECOINS by 0x information.The copyright belongs to the author and may not be reproduced without permission

Related Posts

Crypto Digest: «EU Approves MiCA Regulation»

In today’s post, we give you a brief recap of the week’s most prominent cryptocurrency news so you don’t miss any details. On top of that, in order for you to have the minimum capabilities and tools to give a sound opinion…
Read More

Ankr DeFi Protocol Hacked

On the evening of December 2, 2022, the Ankr DeFi protocol running on the BNB Chain network was hacked. The hacker issued a large amount of aBNBc synthetic tokens for staking (over 5 quadrillion), earning over $15 million on various DEXs. As…
Read More