Legislators from South Korea are trying to incorporate tougher control on crypto assets, in the aftermath of a horrifying murder case involving digital assets.
As per a May 18 report, in a dispute that is thought to have been sparked by an argument over cryptocurrency losses, a Korean woman was kidnapped on March 29 and later killed. The following incident also adds to the scandals list of digital assets, including the collapse of Do Kwon’s Terra ecosystem in May of the previous year.
According to reports, the most recent murder case has increased pressure on legislators to swiftly enact the country’s first separate crypto law, which may pass in a legislative vote later this month.
Furthermore, there is agreement that legislation must be passed as quickly as possible on both sides of the political spectrum, according to Back Hyeryun, a congressman for the opposition Democratic Party of Korea.
Back Hyeryun further added, “There were an excessive number of issues, therefore in order to go fast, it was essential to concentrate on investor protection first.”
The Virtual Asset User Protection bill is a new proposed law that combines 19 distinct crypto-related policies into one independent bill.
As indicated by a draft version of the bill, the regulation layouts clear legitimate meanings of virtual resources and forces punishments for offenses, for example, insider trading and rigging the market.
The proposed legislation would also give the nation’s Financial Services Commission authority to regulate cryptocurrency businesses and asset custody.
Additionally, the act would impose stricter regulations on reserve money and account maintenance, as well as the purchase of insurance by digital asset companies to safeguard themselves against attacks.
These regulations will control digital currencies like Bitcoin, while the government-designated securities would be governed by current capital markets legislation.