South Korea Enacts First-Ever Crypto Asset Legislation Amid Surging Trading Activity

Coinpedia
Coinpedia

30 Jun 2023 2:24 PM

South Korea takes a stride towards legitimizing cryptocurrency with the recent enactment of the nation's inaugural digital-asset legislation. The law,...

  • South Korea has enacted its inaugural digital-asset legislation, aimed at safeguarding investor interests and legitimizing cryptocurrency.
  • The Virtual Asset User Protection law consolidates 19 crypto-focused bills and provides clear definitions for digital assets.
  • The legislation empowers the Financial Services Commission (FSC) and the Bank of Korea to supervise cryptocurrency operators and custodians.
  • The law includes requirements such as insurance coverage, reserve funds, and record keeping.
  • The enactment follows previous challenges in the South Korean cryptocurrency market, including token collapses and withdrawal suspensions.
  • While seen as a positive step, some argue that the legislation might stifle industry growth.

The overall sentiment of the article is positive, highlighting the significance of South Korea's digital-asset legislation in legitimizing cryptocurrency and protecting investor interests. However, there is also mention of concerns regarding potential stifling of industry growth.

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You May Ask

What is the purpose of South Korea's digital-asset legislation?Who has the authority to supervise cryptocurrency operators and custodians under the new law?What are some of the requirements included in the legislation?What were some of the challenges faced by the South Korean cryptocurrency market prior to the enactment of this law?How is the new legislation received by the crypto community in South Korea?

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