South Korea is making a significant move to protect crypto investors in the aftermath of the Do Kwon’s Terra empire collapse.
The government has recently passed the Virtual Asset User Protection Act, aimed at creating a safer environment and preventing “unfair” trading practices in the crypto market.
This groundbreaking legislation is a comprehensive integration of 19 separate crypto-related bills, setting clear definitions for digital assets and establishing a legal framework to penalize illicit trading activities.
The Act aims to apply the Capital Market Act to digital assets with security-like characteristics, enabling the authorities to take stringent actions against those engaged in unfair crypto trades.
With the new Act in place, South Korea is demonstrating its commitment to safeguarding its citizens in the rapidly evolving world of cryptocurrency.
In response to the disastrous Terra collapse, the South Korean government has taken decisive action to protect investors.
The Virtual Asset User Protection Act, passed on June 30, addresses growing concerns about unfair trading practices and manipulations in the crypto market. The Act represents a significant stride toward creating a safer environment for crypto investors in the country.
The new legislation defines several unfair trade practices, including the use of undisclosed important information, market price manipulation, and illegal transactions.
By incorporating these practices into the Act, the authorities can now effectively penalize individuals involved in such activities.
This move emphasizes the government’s dedication to curbing deceptive practices and fraudulent schemes within the crypto space.
The Terraform Labs founder and former CEO, Do Kwon, faced a colossal collapse, leading to a severe financial fraud case in South Korea.
Alongside the former CFO, Han Chang-joon, Do Kwon was sentenced to four months in prison in Montenegro.
Furthermore, he is under the threat of extradition to South Korea for alleged infringement of the country’s capital markets law. The incident highlighted the need for robust legislation to protect investors from potential fraud and market manipulations.
