The South Korean Financial Services Commission (FSC) will implement a new Virtual Asset Law by July 19, requiring 29 registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, to regularly assess the compliance and security of tokens listed on their platforms. This measure aims to protect virtual asset users.
Key Features of South Korea’s New Crypto Regulations
The new law, as reported by The Korea Times, introduces criminal penalties and fines for non-compliance. Offenders may face over one year in jail or fines ranging from three to five times the illicit profits gained. All registered exchanges must review more than 600 tokens on their platforms to ensure they meet the new standards.
Enhanced Review Process for Crypto Exchanges
The legislation mandates exchanges to conduct comprehensive reviews of their tokens every six months, with follow-up evaluations every three months to maintain compliance. This frequent monitoring is intended to uphold the integrity of the crypto market.
Additional Regulatory Measures and New Bureau
The FSC is also developing further guidelines for crypto transactions and has announced the establishment of a new bureau dedicated to virtual assets. This bureau will oversee the regulatory framework, enhancing the efficiency of the cryptocurrency industry’s management. A proposal for this new bureau is set for introduction on June 17 and review by June 18.
Source: coinchapter.com
