South Korean legislature To Explore a New Crypto Licensing Scheme

According to a report commissioned by the South Korean government, the domestic crypto business should adopt a licensing structure for exchanges and token issuers to protect investors. South Korean legislature considering new licensing system for crypto https://t.co/1y5ITPPFP4 — Pavel Nosok (@PavelNosok) May 18, 2022 The Financial Services Commission (FSC) has submitted a report to the National Assembly, which recommends stronger measures to combat insider trading, pump-and-dump scams, and wash trading. The new laws would be more stringent, with harsher penalties for failing to comply than the Capital Markets Act, which the domestic crypto business already follows. According to the Comparative Analysis of the Virtual Property Industry Act report obtained exclusively by Korea Economic Daily on May 17, coin issuers, such as organizations that operate initial coin offerings (ICO) and crypto exchanges, should be licensed. Depending on the risk, several degrees of licenses would be awarded. The “most urgently needed protection” in the market now is to regulate currency issuers through a comprehensive licensing structure. The untimely market crisis triggered by the collapse of the Terra (LUNA) project, whose South Korean inventor Do Kwon may find himself called before the National Assembly to explain what happened, may bolster that position. One proposed law would require coin issuers to submit a white paper to the FSC regarding the...