South Korea’s proposed cryptocurrency regulations have passed the first phase review, which includes harsh sentencing recommendations for those who violate them. The bill will grant the nation’s Financial Services Commission (FSC) the authority to investigate and supervise financial activities related to “digital assets,” including cryptocurrency. The proposed legislation sets out stringent requirements for the sale, storage and trading of cryptocurrencies, focusing on consumer protection and compliance reporting. The bill would become one of the most comprehensive pieces of national cryptocurrency legislation in existence, requiring exchanges and similar service providers to maintain reserves and carry insurance. Businesses and individuals participating in the cryptocurrency economy in South Korea will also be required to self-report irregularities to remain compliant.
The proposed legislation suggests relatively stiff penalties for those who run afoul of the rules, including fines and prison sentences of up to life imprisonment for crimes resulting in losses over approximately $3.75 million.
