The government of South Korea is moving forward with the Virtual Asset User Protection legislation which is formed to protect investors and regulate unfair trade practices.

The nation’s National Assembly has passed the regulatory bill on June 30 in a move towards safeguarding investor wealth after the contemporary implosions from Terra’s ecosystem which left traders rattled. The legislation incorporates 19 crypto-focused bills into one unified, inclusive legislation which defines digital assets and imposes penalties for illegal trading activities.

Local media highlights that the main aim of the Virtual Asset User Protection Act is to apply the Capital Market Act first to virtual assets with a securities nature, while also aiming to build a basis for imposing penalties and liability for damages caused by illicit crypto trading activity.

Among the penalties to be potentially imposed should there be violation of any rules are fixed-term imprisonment of not less than one year and/or major fines. Terraform Labs founder Do Kwon was sentenced to four months in prison by a Montenegro court after being found guilty of using a false passport.

Sources:

https://cointelegraph.com/news/south-korea-passes-bill-to-tackle-unfair-cryptocurrency-trading

https://cryptoslate.com/south-korea-passes-crypto-legislation-focusing-on-investor-protection-rules/

https://biz.sbs.co.kr/article/20000124984