A new version of the Virtual Asset Users Protection Act, issued by the South Korean government states that criminals that earn over 5 billion won ($3.8 million) in illegal crypto profits will face life imprisonment sentences.
The top financial regulator in South Korea, the Financial Services Commission (FSC), implemented a novel legislation on February 7 with the objectives of safeguarding the interests of cryptocurrency investors and fostering transparency.
The new crypto law in South Korea forbids the use of “undisclosed important information” pertaining to cryptocurrencies, as well as market manipulation and illegal trading.
Infractions are punishable by severe criminal sanctions and penalties, such as imprisonment for a term exceeding one year or a fine of three to five times the amount of illicit profits.
The Virtual Asset User Protection Act is anticipated to enter into force on July 19, 2024, subsequent to its enactment on July 18, 2023, as stated in the announcement.
As per the FSC, individuals convicted of illicit cryptocurrency trading schemes and earning in excess of 5 billion won ($3.8 million) are subject to life imprisonment.
“The law also specifies that the FSC has the authority to inspect and supervise virtual asset business operators, as well as investigate and take action against unfair trading practices,” the regulator stated.
The governing body further stated that it has the authority to investigate the operations and status of virtual asset business operators and ensure that they comply with the Virtual Asset User Protection Act.
Legislative approval of the Virtual Asset User Protection Act by South Korean lawmakers occurred in June 2023, as previously documented. A significant industry implosion involving Terraform Labs and its founder, South Korean national Do Kwon, prompted the enactment of the new cryptocurrency legislation. The Terra collapse of May 2022 resulted in the market losing over $450 billion.
At this time, Kwon is confronted with the prospect of extradition to the United States from South Korea, where he is indicted on eight counts encompassing wire fraud, commodities fraud, securities fraud, and conspiracy to defraud and manipulate the market.
Bangkok Post, an Asian news agency, reported on February 7 that the Thai Ministry of Finance has exempted value-added tax (VAT) on digital asset trading in an effort to position Thailand as a digital asset center.
The regulator has made the decision to relax tax regulations by temporarily exempting cryptocurrency income from the payment of 7% VAT beginning on January 1, 2024, without any specified end date.
