-->
South Korean

SOUTH KOREAN LEGISLATURE CONTEMPLATES NEW LICENSING SYSTEM FOR CRYPTO 

A report accredited by South Korea’s federal government endorses the domestic crypto industry to take up a licensing system for exchanges and token issuers as a means of safeguarding investors.

The report revealed by the Financial Services Commission (FSC) to the National Assembly, the country’s legislature, also advocates for fresh regulations to lighten insider trading, pump and dump schemes and wash trading.

The new regulation will be more rigid, and the punishment for non compliance would be tougher than those in the Capital Markets Act that the domestic crypto industry currently abides by.

“The Comparative Analysis of the Virtual Property Industry Act” report acquired exclusively by Korea Economic Daily on Tuesday shows a recommendation to build a licensing system that would be applied to coin issuers such as companies that conduct initial coin offerings (ICO) and crypto exchanges. Different degrees of license would be issued according to the risk involved.

RELATED: South Korean crypto-friendly candidate Yoon’s win at presidential election drives an ICX boost

Directing coin issuers via a robust licensing system is considered to be the “most urgently needed protection” in the market today.

That position may be undermined by the untimely market crash caused by the fall of the Terra Project, whose South Korean founder Do Kwon may be called by the National Assembly to give details about what really happened.

One endorsed regulation would force coin issuers to yield a white paper to the FSC about that project which includes details about the company’s officers, how it plans to make use of the raised through an ICO and an outline of the risks that are related to the project.

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

Check Also

bitcoin

EU MPs Attack Amazon’s Participation in Digital Euro Project

A cross-party coalition of members of the European Parliament on Tuesday came under fire at …

Leave a Reply

Your email address will not be published.