South Korea adopted law to protect users of virtual assets to regulate the cryptocurrency sector and strengthen investor protection

Von Krypto News Österreich

Südkorea hat in den letzten Jahren eine wichtige Rolle bei der Regulierung von Kryptowährungen eingenommen. Die südkoreanische Nationalversammlung hat am 1. Juli 2023 das Gesetz zum Schutz der Nutzer von virtuellen Vermögenswerten verabschiedet, um den Kundenschutz zu gewährleisten und ein sicheres Umfeld für Investoren zu schaffen. Das Gesetz beinhaltet 19 Vorschläge, die den Anbietern von Kryptowährungsdienstleistungen verschiedene Compliance-Anforderungen auferlegen, um den Schutz der Vermögenswerte der Nutzer zu gewährleisten. Die Compliance-Anforderungen umfassen unter anderem die Trennung der Vermögenswerte und Einlagen der Nutzer, eine obligatorische Vermögensversicherung und die Vorhaltung von Offline Cold Wallet Reserven, um das Risiko von Hacks oder Systemausfällen zu …
South Korea has played an important role in regulating cryptocurrencies in recent years. On July 1, 2023, the South Korean National Assembly passed the law to protect users of virtual assets to ensure customer protection and create a safe environment for investors. The law includes 19 proposals that impose various compliance requirements for the providers of cryptocurrency services to ensure the protection of users' assets. The compliance requirements include the separation of the assets and deposits of the users, mandatory asset insurance and the provision of offline cold wallet reserves to risk hacks or system failures ... (Symbolbild/KNAT)

South Korea has played an important role in regulating cryptocurrencies in recent years. On July 1, 2023, the South Korean National Assembly passed the law to protect users of virtual assets to ensure customer protection and create a safe environment for investors. The law includes 19 proposals that impose various compliance requirements for the providers of cryptocurrency services to ensure the protection of users' assets.

The compliance requirements include the separation of the assets and insoles of the users, mandatory asset insurance and the provision of offline cold wallet reserves to minimize the risk of hacks or system failures. The providers must also lead comprehensive transaction records. The law provides for punishments for activities such as price manipulations, misleading or incorrect advertising for crypto assets and the failure to provide investors with essential information. In the event of violations, prison sentences or fines threaten.

The law also clearly defines virtual assets as "electronic representations of economic value" that can be transmitted electronically. However, it is worth noting that the law excludes the Central Bank for Digital Currencies (CBDC) of the South Korean central bank. This shows that the main focus is on the regulation of privately issued cryptocurrencies, while the government can continue to research and develop its initiatives for digital currencies.

The need for regulating cryptocurrencies became increasingly clear by incidents such as the collapse of the Terra (Luna) network. South Korea was connected to the lost network and experienced first -hand the effects. After the breakdown of the network, South Korea crashed into the Chainalysis Global Crypto Adoption Index from 2022 after it was number 7. These incidents and other challenges have caused regulatory authorities to take measures worldwide to combat risks and to ensure responsible growth of the cryptocurrency industry.

The adoption of the law on the protection of users of virtual assets in South Korea underlines the country's commitment to regulate cryptocurrencies and the protection of investors. South Korea strives to improve security, transparency and accountability in the crypto industry through extensive regulations and compliance measures. In view of the incidents in the global crypto landscape, governments and financial institutions worldwide recognize the importance of proactive regulation to minimize risks and at the same time promote innovation and investor protection.