South Korean watchdog set to toughen penalties for crypto fraud
Crypto regulations are becoming necessary due to the increasing fraud in the industry. However, the growth in innovative technologies has also brought many downsides to the crypto space. Several crypto project crimes are completed through technological processes and vulnerabilities on the platforms.
In addition to creating regulatory bodies, most jurisdictions are developing restrictive measures in their approach. Some have also posted penalties for bad actors in crypto scams and exploits in their regions.
In a recent development, South Korean regulators plan to toughen penalties for crypto fraud. The new move by Korean authorities focuses on improving legislation following the collapse of the Terra ecosystem this year.
Legislation is aimed at investor protection for cryptocurrencies
The regulators emphasize protecting investors in their activities with digital currencies. Therefore, they are tightening the penalties for unfair trading in the crypto industry.
The report by local media revealed that the country’s regulators are on the new legislation for virtual assets. These involved the collaboration between the Financial Service Commission (FSC) and the National Assembly.
They plan to pass a bill to make it easier for financial regulators to monitor and punish unfair crypto trading practices. Some outlined actions to monitor crypto exchanges include price manipulations, use of undisclosed information, and fraud.
The regulators have not yet provided details of the penalties for breaching the trading practices legislation. However, expectations are for their designs in the future. They will also synchronize both supervision and penalties on standards similar to and available in the traditional financial system.
Furthermore, in the legislation for crypto-assets, the National Assembly already has 14 proposals in circulation. The comprehensive Digital Assets Basic Act is also being worked on. The aim is to ensure more investor protection from 2023.
According to an unnamed official from the National Assembly, the US Securities and Exchange Commission (SEC) displays a wide range of legal powers. Therefore, it does not require separate legislation to punish unfair trade in digital assets. However, in Korea, related legislation is needed to do so.
South Korea moves against Terra boss Do Kwon
After the algorithmic stablecoin Terra collapsed, many accusations arose against its boss Do Kwon. In September, South Korean authorities issued an arrest warrant for Kwon, but it was later dismissed.
Furthermore, Interpol placed Kwon on its Red Notice list and asked the police to locate and arrest him. The South Korean Foreign Ministry asked Kwon to surrender his passport or face having it cancelled.
Currently, Terra’s new token, Terra Classic (LUNC), is building its ecosystem strongly to increase stability. At the time of writing, LUNC is trading at $0.0002341, indicating a decrease of 3% in the last 24 hours.
featured Image From Pixabay, Charts From Tradingview
