Korea’s National Assembly Puts Virtual Assets Bills on Its Agenda

03/28/2023 09:04 • Metaverse Matters • 83 views

On March 28th, the Government Affairs Committee of the Korean National Assembly convened a bill subcommittee to put 18 bills related to virtual assets on the agenda. Among the 17 existing bills pending in the National Assembly, the newly proposed “Encryption Asset User Protection Act” by Democratic lawmakers has been added.

The Government Affairs Committee of the Korean Congress has put 18 bills related to virtual assets on the agenda

The Korean National Assembly has proposed 18 bills regarding virtual assets, one of which is the new and unique “Encryption Asset User Protection Act” proposed by Democratic lawmakers. The Government Affairs Committee of South Korea’s National Assembly convened a bill subcommittee on March 28th to discuss and debate the bills. In this article, we will discuss the context and implications of this development.

Background on Virtual Assets in South Korea

South Korea has been a major market for virtual assets like cryptocurrencies, virtual goods, and virtual currencies since the rise of Bitcoin in 2018. The country has a significant user base of these virtual assets, with high levels of trading activity and numerous exchanges. However, there has been a growing concern about the unchecked rise of virtual assets in Korea. The South Korean government has been trying to regulate these assets to protect users and establish a secure and transparent market.

Virtual Asset Regulations in South Korea

In 2018, the Korean government passed regulations to clamp down on virtual asset exchanges and users to mitigate fraudulent activities in the country. In addition, the government set up measures to track the real identities of virtual asset traders to curtail illegal activities. Moreover, in 2019, the South Korean government proposed on-site work standards, including a customer complaint management system for virtual asset exchange operators.

Encryption Asset User Protection Act

The new bill proposed by the Democratic Party members is titled the “Encryption Asset User Protection Act.” The bill aims to protect virtual asset users from illegal and unethical practices, including fraud, money laundering, and unethical programs like pump-and-dump schemes. However, the bill faces opposition from a few virtual asset players, who have voiced their concern over a possible over-regulated market.

Implications of the Bill for Virtual Asset Users

The proposed Encryption Asset User Protection Act would set up a regulatory framework that will provide protection for virtual asset users. This regulatory framework is a step towards establishing trust and legitimacy in the virtual asset market. Users will have the assurance that their assets will be safe from fraudulent activities carried out by cybercriminals. Moreover, the introduction of the bill could increase Korea’s position as a leader in the virtual asset market. Having a comprehensive regulatory framework in place will attract international investors looking to enter a secure market for virtual assets.

Conclusion

The proposal of the “Encryption Asset User Protection Act” could potentially foster growth in the virtual asset market and give users the assurance of safety. As the bill passes through the subcommittee on virtual assets, the market participants in Korea will be keenly watching how this development unfolds.

FAQs

1. What are virtual assets?
Virtual assets refer to virtual currencies, virtual goods, and other digital assets. They are secured by cryptographic algorithms and can be traded or exchanged for goods and services.

2. How are virtual assets currently regulated in Korea?
Korean government has implemented various measures like on-site work standards and tracking real identities of virtual asset traders to reduce fraudulent activities and protect users.
3. What are the implications of the Encryption Asset User Protection Act?
The proposed bill aims to provide users protection from illegal and unethical practices and establish a secure and transparent virtual asset market in Korea.

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