On Friday,
June 30, 2023, South Korea's National Assembly passed the Virtual Asset User
Protection Act, dramatizing the country's first step towards building a legal
framework for cryptocurrencies.
The
legislation, which defines digital assets and sets out punishment for unjust
transactions, will be enforced in 2024 and it is compiled from 19 proposals
from lawmakers.
It gives
digital assets a definition and sets out retributions for unfair transactions.
Service
providers must separate user assets, have insurance, hold some reserves in cold
wallets and maintain records of all transactions.
The bill empowers
the Financial Services Commission to be in charge of and supervise service
providers.
The Bank of
Korea has the right to request data from service providers.
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