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South Korea is taking steps towards protecting cryptocurrency users against digital asset manipulations like Terra Luna’s ecosystems, for the first time ever. Virtual Asset User Protection Bill was passed by National Assembly on 30th June, 2023 to regularize crypto industry in the country. As stated by local News Agency SBS Biz, the purpose of passing such a legislation is to protect crypto investors from manipulations and to regulate unfair trading practices in the industry.

What is Virtual Asset User Protection Bill?

According to the news agency, the purpose behind passing the bill is to ensure that Virtual Asset Service Providers assume full responsibility for user deposits and provide them with insurance. Moreover, the aim is to introduce penalties to those who indulge in misconduct of unfair crypto trading. The idea of the bill is to enforce first Capital Market Act to virtual assets with securities nature.

The step was taken by South Korea after Do Kwon, Terraform Labs founder was sentenced for four months in Montenegro for using a false passport. He is also facing criminal charges and an arrest warrant in South Korea for manipulating the markets and violating capital markets law in the country. The prosecutors say that Terra Luna token collapse was the biggest scam ever in the country’s history.

In a current development, the Financial Services Commission has also introduced a new bill which aims at requiring all details related to cryptocurrencies from firms operating in South Korea in July, 2023. It requires to submit details about holding and issuing of cryptocurrencies. The aim is to have an eye on all crypto transactions to ensure transparency. In a bid to guarantee transparency at all levels, South Korea’s National Assembly has passed a bill unanimously which makes it obligatory for all lawmakers and high rank public officials to disclose their crypto holdings. This is a huge step towards accountability and transparency related to digital assets in the country.

South Korea is known for its exuberantly expanding crypto space. Despite strict crypto related guidelines, South Korea is the hub for crypto trading and sometimes the price of Bitcoin is higher in Korean market than rest of the world.

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