Today, on February 7, the Financial Services Commission (FSC) published a notification on the introduction of the law "On the Protection of Users of virtual Assets" from July 19, 2024. The law provides for expanded powers of South Korean supervisory authorities to control the virtual asset market and the activities of business operators.
The law provides for special powers of the Financial Supervisory Service (FSS) and the Financial Services Commission to conduct in-depth verification of cryptocurrency companies, as well as to investigate and take action against unfair trading practices such as manipulation of market prices.
In cases of detection of illegal profits or theft of users' crypto assets on a particularly large scale — more than 5 billion won (about $4 million) — the perpetrators can be sentenced to life imprisonment.
The day before, the South Korean Financial Services Commission announced that starting in the second quarter of 2024, all new heads of crypto companies will have to receive preliminary approval from the regulator before taking office.