The South Korean parliament has begun discussions on strong and broad crypto regulation. The focus is on investor protection and asset issuance and disclosure.
South Korea is taking further steps to regulate the crypto market, with local media reporting that the country’s parliament is having a lively debate on digital asset laws.The focus of the discussion is on investor protection. Yes, a point that the country’s legislators have pondered for a long time. Another major issue was the issuance and disclosure of virtual assets.
According to reports, South Korea’s cryptocurrency market will surpass 55 trillion won (around $42 billion) in the second half of 2021. In total, about 15 million users use cryptocurrencies, according to data.
As such, the authorities believe investor protection and disclosure measures should be taken. Recent discussions are a big step towards that, and incidents such as the collapse of the UST stablecoin only make this a higher priority.
South Korea’s National Assembly Executive Committee has legislation related to cryptocurrencies pending. This includes a total of 18 bills, including 11 statutes on virtual assets, four amendments to the Electronic Financial Transactions Act, two amendments to certain financial information laws, and one amendment to the Financial Services Commission. increase.
In April, authorities will consult experts and hold public hearings. Laws can move forward after being put on hold in the early stages.
Crypto Regulation Expected This Year
It has long been known that South Korea is committed to regulating the cryptocurrency market. The country has a large number of cryptocurrency investors. The authorities appear to be implementing a comprehensive regulatory framework.
Recently, lawmakers released guidelines for security token offerings. This was a positive step for the company. Meanwhile, the Financial Services Commission said it would monitor crypto whales. In addition, the authorities are working on drafting the Metaverse Industry Promotion Act.
South Korea Makes Progress in Crypto Control
South Korean regulation has focused both on promoting certain aspects of the market and imposing regulation on others. Web3 and the Metaverse are the main areas of interest.the state invested $1.6 million in the metaverse fund.
To continue operations, domestic crypto exchanges renewal their banking.local media report Illegal exchanges continue to be a problem, with traders using them to trade over $4.3 billion.
BeInCrypto has reached out to the companies or individuals involved in the story to obtain an official statement regarding the recent developments, but has yet to hear back.