The Vitual Assets User Protection Act has been passed in South Korea in order to protect investors

The ‘Virtual Asset User Protection Act’ passed the National Assembly’s Political Affairs Committee. The bill consolidates and adjusts 19 bills related to virtual assets and defines them as electronic certificates with economic value that can be traded or transferred electronically, excluding CBDCs. The law requires virtual asset operators to deposit and trust customer deposits, store the same items and quantity as customer virtual assets, purchase insurance, and maintain records of transactions.

The bill prohibits unfair trade practices and restricts virtual asset operators from trading self-issued virtual assets and blocking deposits and withdrawals without justification. The Financial Services Commission will supervise and inspect virtual asset operators and establish a virtual asset committee to advise on virtual assets. The FSC will discuss the second phase of legislation, which will complement market order regulations. The bill will be finalized in the plenary session of the National Assembly. The Special Act is a bill aimed at preventing money laundering, and the need for a ‘business right law’ to help virtual asset operators expand their business areas and promote the industry has been raised.

Read more: The National Assembly’s Political Affairs Committee held its first subcommittee for bill review