Congress [ⓒ디지털데일리]
[디지털데일리 박세아 기자] The Virtual Asset User Protection Act passed the plenary session of the National Assembly on the 30th. The financial authorities plan to take measures to establish a market discipline system through active consultations with related organizations in accordance with future bills.
The Financial Services Commission has been regulating virtual asset operators through the revision of the Specific Financial Information Act (hereinafter referred to as the Special Act) in March 2021.
However, it was difficult to actively respond to various unfair trade practices with the current anti-money laundering (AML)-centered regulatory system only with the existing special law. In addition, it has been pointed out that there are limitations in preventing user damage in advance or in supervising and punishing virtual asset operators.
In this situation, after the collapse of Terra and Luna last year, discussions on enactment of laws to protect virtual asset investment users were in full swing.
Finally, on April 25, at the Legislative Subcommittee of the Political Affairs Committee, a consensus was formed between the ruling and opposition parties that a regulatory system should be prepared first, considering the urgency of user protection. As a result, a final agreement was reached by promoting gradual and step-by-step legislation.
Afterwards, through in-depth discussions, an alternative was prepared by integrating 19 virtual asset-related bills pending in the National Assembly, and the Virtual Asset User Protection Act was passed at the plenary session of the National Assembly on the same day after passing through the Legislation and Judiciary Committee of the National Assembly.
The amendment largely contains ▲virtual asset user asset protection ▲regulation of unfair trade practices in the virtual asset market ▲financial authority’s supervision and sanctions authority for the virtual asset market and operators.
The bill passed this time stipulates the use of undisclosed important information related to virtual assets, market manipulation, and illegal transactions as unfair transactions. In case of violation, it is stipulated that in addition to liability for damages, fines will be imposed. Specifically, if an unfair trade act is discovered, the Financial Services Commission can impose a penalty of up to 5 billion won equivalent to twice the profit gained or the loss avoided.
In the case of punishment and aggravated punishment for those who engage in unfair trade practices, and imprisonment, suspension of qualifications and fines can be imposed concurrently. Confiscation, additional collections, and joint punishment provisions were also introduced.
In addition to unfair trade, it stipulates that fines of up to 100 million won may be imposed in case of violation of the applicable law.
The Financial Services Commission said, “This legislation introduces a regulatory system for virtual assets, which is expected to contribute to the protection of users in the virtual asset market and the establishment of a sound and transparent trading order in the virtual asset market.” While preparing, we plan to promote various measures to establish a market discipline system by actively consulting with related organizations such as the Ministry of Strategy and Finance, the Ministry of Science and Technology, the Ministry of Justice, the Ministry of Public Administration and Security, the prosecution, the police, the Bank of Korea, and the Financial Supervisory Service, even before the enforcement of the law.”
Meanwhile, the enactment plan will go into effect in July next year after going through the government law promulgation process.
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2023-06-30 09:36:55
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