A new crypto legislation in South Korea introduces ongoing review of tokens by exchanges. As reported by The Korea Times, South Korea is set to implement the law on virtual asset user protection by July 19th.
Recently, the South Korean financial regulator, the Financial Services Commission (FSC), sent notifications to 29 registered exchanges in the country, including Upbit, Bithumb, Coinone, Korbit, and Gopax, emphasizing the need for these companies to regularly assess the tokens listed on their platforms and determine if they should remain listed.
The new legislation imposes criminal penalties and fines for violations, including imprisonment for over a year or fines up to five times the amount of illegal profits. The law requires all exchanges to review the over 600 cryptocurrency tokens listed on their platforms. After an initial review, exchanges must conduct this assessment every three months.
It is worth noting that in February, the South Korean government revealed an update to the Virtual Asset User Protection Act. The FSC announced that crypto industry criminals engaging in illicit market activities could face criminal penalties, possibly leading to life imprisonment.
The regulator emphasized that the aim of the law is to protect virtual asset users and maintain order in the virtual asset market. The Virtual Assets User Protection Act, enacted on July 18, 2023, will come into effect on July 19, 2024. This marks a significant step towards establishing a solid legal framework in the country.
Please note that the opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
