South-Korean authorities bring forward new amendments to the crypto assets and crypto-based projects. South-Korean authorities are concerned about controlling the cryptocurrency exchange in the country.
The concept behind the new regulation
In the past few weeks, too much happened in the crypto industry, such as Terra Luna and FTX turmoil. Concerning these two turbulence in the crypto market, the Financial Services Commission of the country reported several regulations for cryptocurrencies.
FCA, the Financial Services Commission, has proposed the amendment to the National Assembly and mentioned interior warfare trading and pump and dump scams in the country.
South Korean regulators’ main aim is to prevent the crypto market and crypto users from the trouble firms like FTX.
Congressman of South Korea, Yoon Chang-Hyun, composed regulations to develop controlling abilities of financial authorities from unethical events in the crypto market.
According to local media outlet News 1, Chang-Hyun is offering more powers to the country’s Financial Services Commission and Financial Supervisory Service “in exchange for self-regulation” of cryptocurrency exchanges.
“Rep. Yoon Chang-hyun of the People’s Power Party plans to propose amendments to the Secure Digital Asset Transactions Bill at the First Legislative Review Subcommittee of the Political Affairs Committee of the National Assembly, held on the same day.”
New Regulations can be strict.
According to the Forbes report, new regulations are more strict than earlier; Forbes added about one of the proposed recommendations, coin issuers have to submit a white paper to FCA, have to explain their project along with the companies executives’ details, issuer have to share the details about how the funds obtained from ICO and where it is going to be used and most importantly issuer have to mention the risks from the project.
As well as, if there is any update in the project, the firm has to update the white paper prior seven days before it is going to impose. Companies and other offices outside Korea must follow the same rules as mentioned if they want to trade their coins and tokens in Korea.
Conclusion
The Korean authorities are taking these decisions to prevent their citizens from another crash or collapse like Terra Luna and FTX.
Because of these new amendments, authorities can look after crypto projects and exchanges to protect customers from trouble. BusinessNews mentioned, “Another important amendment to the Digital Assets Law is that cryptocurrency trading platforms will no longer be able to arbitrarily confiscate their users’ deposits once it happened, which happened with FTX and Alameda Research.”