South Korea approved its first standalone digital-asset bill to boost investor protection just over a year after the implosion of tokens created by countryman Do Kwon exacerbated a $2 trillion crypto-market rout. Parliament on Friday passed the Virtual Asset User Protection legislation, which integrates 19 crypto-related bills, after a prolonged delay. The code defines digital assets and imposes penalties for transgressions such as the use of nonpublic information, market manipulation and unfair trading practices. The legislation gives the Financial Services Commission the power to oversee crypto operators as well as asset custodians. The Bank of Korea would also be able to probe such platforms. The act requires insurance coverage, reserve funds and necessary record keeping. The rules cover assets such as Bitcoin, while existing capital-markets law applies to tokens deemed securities. Kwon was recently sentenced to four months in jail in Montenegro for trying to travel with a forged passport. He’s wanted by South Korea and the US after the 2022 collapse of his TerraUSD and Luna coins wiped out at least $40 billion.
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