On February 7th the Financial Services Commission (FSC), the South Korean financial regulator, has passed a new law. In simple terms, this law prohibits market manipulation and illegal trading in the crypto markets. The FSC will also be given new powers to enforce the law. The law serves to protect investors.
Korean Crypto Regulation
The new law is part of Korean law Virtual Asset Users Protection Act. This is an overarching crypto law that must protect crypto users.
“The FSC’s authority to monitor and audit crypto companies and to investigate and, where appropriate, take action against unfair trading activities is also enshrined in law.”
According to the FSC, it will also have the necessary powers to enforce the law. But the most striking thing about the new law, announced Wednesday, is the steep penalties associated with these crimes. Crypto criminals who steal more than $3.8 million can even face life behind bars.
Do Kwon and the Terra fiasco
The Virtual Asset Users Protection Act was created on July 18, 2023 and will take effect on July 19 of this year. The law was announced after the Terra (LUNA) fiasco in May 2022. The crypto disaster, which South Korean Do Kwon was responsible for, resulted in hundreds of billions of dollars disappearing from the crypto sector.
However, Do Kwon is currently still in custody in the eastern European city of Montenegro, where he was arrested last year after a long manhunt. However, it appears that he will not be extradited to South Korea but to the USA. In addition to South Korea, the USA has also filed charges against him. The allegations include commodity fraud, securities fraud, money laundering, fraud and market manipulation.
Somewhat more positive news comes from Asia: the Thai Ministry of Finance has announced tax breaks for profits from crypto trading. Income from crypto will be completely tax-free from January 1, 2024. The tax break is part of the Thai government’s efforts to position itself as a crypto hub. This is reported by the Bangkok Post.
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