New Law to be Passed in South Korea to Curb Crypto Scams

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In the wake of the increasing number of scams in the crypto space, South Korea has decided to crack down on fraudsters in the form of stricter laws. The new laws will primarily focus on protecting investors, users, their investments and digital assets. The law will also impose severe penalties for such convictions. The crypto community has been in some turbulent times. In light of the Terra Luna crash and the ever-increasing number of scams, the problems seem to never end. The government of South Korea has therefore decided that regulating crypto-assets and bringing such crimes under the law will be in the best interests of the citizens. The National Assembly and the Finance Commission have joined forces to draft legislation for the same. The lawmakers aim to bring crime in the crypto space on par with financial crime, for which the Financial Services Commission is considering bills. The constitution on digital assets is also being drafted and discussed; However, this new crypto law with more guarantees for investor protection will probably be introduced in the assembly in 2023. In an effort to track and monitor money laundering attempts, South Korea has also announced increased scrutiny of crypto whales with assets over $70,000. An official of the assembly, under anonymity, has claimed: “In the United States, since the Securities and Exchange Commission (SEC) exercises a wide range of powers, it is possible to punish unfair trading of virtual assets without separate legislation, but in Korea, related legislation is absolutely necessary.” More than ten bills on crypto have been circulated in the assembly so far, but since these bills may take a long time to become law, the new law has taken on greater significance.According to Kim So-Young of the Financial Services Commission, the country should regulate the necessary the cases and make up for and improve the flawed cases as the situation changes. South Korea had also previously issued an arrest warrant against Terra’s boss, but it was eventually dismissed. This has shown that the country is particularly concerned with curbing unfair practices and fraud in the sector It is only logical that a law along these lines would strengthen its will to reduce crime related to crypto.Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.