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South Korea’s first digital asset law comes into force after year of finessing
The Virtual Asset User Protection Act focuses on investor protection and mandate that exchanges keep at least 80% of user deposits in a cold wallet.
The Virtual Asset User Protection Act focuses on investor protection and mandate that exchanges keep at least 80% of user deposits in a cold wallet.
The new amendments will hand life sentences to any criminal that embezzles over $3.8 million, with the minimum time served for digital currency crime at one year.
Elsewhere, Hong Kong’s Treasury has proposed bringing OTC venues under the city’s regulations, arguing that they have been used to perpetrate ‘crypto’ fraud.
The move is aimed at curbing illegal outflow of investment and money laundering as Koreans purchase digital assets on offshore platforms, according to the Financial Services Commission.
Bank of Korea is collaborating with LG CNS to develop a CBDC system for tokenized deposits, utilizing LG CNS's expertise, with a KRW 9.68 billion budget and plans for a 2024 trial.
South Korea's Financial Services Commission mandates digital exchanges to offer interest on deposits from July 2024, excluding NFTs and CBDCs, with stringent rules for asset custody.
The Financial Services Commission is looking to integrate the metaverse into the financial services sector, inviting the public to share their views on the planned move intended to shape the future of the payments industry.
The Bank of Korea is looking to develop a new monetary system that focuses on the use of a wholesale CBDC under its latest partnership with the BIS and several other local entities.
South Korean regulators target OTC digital currency transactions due to rising criminal activity, discussing regulation in a session on 'Criminal Legal Issues Related to Virtual Assets.'
Authorities in South Korea aim to recover unpaid taxes by seizing digital currencies from tax evaders in Cheongju via legal measures.
The new disclosure requirement is geared toward creating "more consistent and clear information about companies that issue or hold virtual assets," according to the Financial Services Commission.
South Korea’s Financial Services Commission move is in response to the request of the country’s Anti-Corruption and Civil Rights Commission.