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.

https://twitter.com/PavelNosok/status/1526818008651505665

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 their project, which would include information about the company's officials, how the cash obtained through an ICO will be used, and the project's dangers. Before proposed modifications could take effect, updates to the white paper would have to be filed at least seven days in advance. Companies with offices outside of Korea that want their tokens traded on Korean exchanges must follow the white paper rule.

The FSC was likely considering stablecoins before the troubles with Terra USD (UST), Dei (DEI), and Tether (USDT) last week (USDT).

South Korean legislature To Explore a New Crypto Licensing Scheme

South Korean government, the domestic crypto business should adopt a licensing structure for exchanges and token issuers to protect investors.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

South Korean legislature To Explore a New Crypto Licensing Scheme

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