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Lawmakers in South Korea are advancing efforts to establish stricter regulations for digital assets following a high-profile murder case linked to cryptocurrency.
According to a May 18 Bloomberg report, a South Korean woman was abducted on March 29 and subsequently murdered in a dispute believed to stem from losses related to cryptocurrency. This incident adds to a series of digital asset-related scandals, including the collapse of Do Kwon’s Terra Money ecosystem in May of the previous year.
The murder case has reportedly accelerated the push for lawmakers to expedite the nation’s first standalone cryptocurrency bill, which is expected to be passed in a parliamentary vote later this month.
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“There is finally a consensus on both sides of the aisle that we need to get a law in place as soon as possible,” Back Hyeryun, a lawmaker from the opposition Democratic Party of Korea, told Bloomberg.
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“There were too many issues, so it was necessary to focus on one thing first — investor protection — to move on quickly,” she added.
The proposed legislation, titled the Virtual Asset User Protection Bill, consolidates 19 distinct crypto-related measures into a single standalone bill.
Related: South Korean authorities raid Upbit, Bithumb crypto exchanges after political scandal
A draft version of the bill reviewed by Bloomberg outlines clear legal definitions for virtual assets and establishes penalties for offenses such as insider trading and market manipulation. Additionally, the bill would grant the Financial Services Commission (FSC) the authority to oversee cryptocurrency companies and manage asset custody.
The act will also require digital asset firms to obtain insurance to protect against hacks, alongside stricter regulations regarding reserve funds and account keeping. These rules are set to apply to cryptocurrencies such as Bitcoin, while existing capital markets laws will continue to apply to tokens classified as securities by the government.
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