Korean crypto criminals can receive life imprisonment

South Korean authorities are establishing a new legal framework, individuals who manipulate crypto market prices can receive life imprisonment.

Korean crypto criminals can receive life imprisonment

In the latest announcement from the Korean Financial Services Commission (FSC), individuals who commit illegal acts in the virtual asset market may be subject to criminal penalties, including life imprisonment. , when the new cryptocurrency law will come into effect on July 19, 2024.

According to the FSC, violating the new cryptocurrency law could result in at least a year in prison, or a fine three to five times the illegal amount. In particular, individuals who illegally profit more than 5 billion Korean won (3.76 million US dollars) can face life imprisonment.

At the end of June 2023, South Korean lawmakersthrough“Virtual Asset User Protection Act” with a one-year grace period. The new law aims to eliminate illegal market practices, such as using confidential information for cryptocurrency investments, manipulating market prices and engaging in fraudulent transactions.

Financial authorities can monitor and examine digital asset service providers' compliance with the law, as well as investigate individuals suspected of price manipulation. If discovered, FSC has the right to suspend business, prosecute or notify the legislature before conducting an investigation.

The Act also requires cryptocurrency service providers todeclaredigital assets in financial reporting, andforced to establish a reserve fundin a bank account to compensate users for damages if unexpected risks occur on the floor. 

The new law is part of a two-part South Korean law aimed at establishing a legal framework for the cryptocurrency sector. The second part of the regulation is currently being developed, the core of which focuses on standardizing the token issuance process and disclosing information to investors.

The "martial law" move by Korean financial managers is well- founded The people of this country own up to 98.5 billion USD worth of crypto assets. "Land of kimchi" is also a countryfirmly maintains the ban on crypto ETFseven though the US has given the "green light".

However, they were also theresigns of being more "open".plans to meet with the Securities and Exchange Commission (SEC) in the second quarter of 2024 to discuss crypto market regulations, including Bitcoin ETF spot.