The South Korean government has supplemented the Law on the Protection of Users of Virtual Assets with a provision introducing a standard of life imprisonment for theft of cryptoassets on a particularly large scale.
On February 7, the Financial Services Commission (FSC) published a notice announcing the implementation of the Virtual Asset User Protection Act from July 19, 2024. The law provides for expanded powers of South Korean supervisory authorities to monitor the virtual asset market and the activities of business operators.
The law provides specific powers for the Financial Services Authority (FSS) and the Financial Services Commission to conduct in-depth investigations into cryptocurrency companies and to investigate and take action against unfair trading practices such as market price manipulation.
In cases where facts of illegal profits or theft of users’ crypto-assets are revealed on a particularly large scale - more than 5 billion won (about $4 million) - the perpetrators may be sentenced to life imprisonment.
The day before, the South Korean Financial Services Commission announced that starting from the second quarter of 2024, all new heads of crypto companies will be required to obtain prior approval from the regulator before taking up their positions.
On February 7, the Financial Services Commission (FSC) published a notice announcing the implementation of the Virtual Asset User Protection Act from July 19, 2024. The law provides for expanded powers of South Korean supervisory authorities to monitor the virtual asset market and the activities of business operators.
The law provides specific powers for the Financial Services Authority (FSS) and the Financial Services Commission to conduct in-depth investigations into cryptocurrency companies and to investigate and take action against unfair trading practices such as market price manipulation.
In cases where facts of illegal profits or theft of users’ crypto-assets are revealed on a particularly large scale - more than 5 billion won (about $4 million) - the perpetrators may be sentenced to life imprisonment.
The day before, the South Korean Financial Services Commission announced that starting from the second quarter of 2024, all new heads of crypto companies will be required to obtain prior approval from the regulator before taking up their positions.
