Concerned that they may not be able to curb the impact of an unfortunate incident like the Terra-Luna incident to protect investors, South Korean lawmakers are now considering enacting a law aimed at toughening the punishment for “unfair asset trading.” virtual”.

This implies the push to ensure “investor protection” who trade digital currencies.

According to to local reports, The Financial Services Commission is working with the National Assembly to pass a bill that involves monitoring and punishing unfair business practices, such as the use of unknown information, price manipulation and fraud, while monitoring cryptocurrency exchanges.

To date, there are already more than 12 different proposals on crypto and digital assets circulating in the National Assembly. However, because it would take longer for opposition parties to agree on such a lengthy bill, financial authorities would first consider legislation related to investor protection.

“In the US, since the Securities and Exchange Commission (SEC) wields a wide range of powers, it is possible to punish unfair trading in virtual assets without separate legislation, but in Korea, related legislation is absolutely necessary. . In the future, virtual asset exchanges will also be monitored and supervised by financial authorities,” an anonymous National Assembly official said.

Although there are no details yet about the type of punishments that will be issued for these malpractices, however, as expected, the financial authorities could design the punishment to be similar to that of the traditional financial industry so that supervision and discipline agree.

That South Korea is considering this legislation is evident that the country is interested in growing its digital currency ecosystem. To prove it, the country has revealed its plans to provide digital identities encrypted by blockchain with smartphones to citizens in 2024 to facilitate their economic development

As Blockchain.News reported, the South Korean government stated that with the expansion of the digital economy, the digital identities implanted in the smartphone would be an essential emerging technology to support data development.

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