Government Affairs Committee Sets 18 Virtual Asset Bills on Agenda

03/28/2023 09:04 • Metaverse & Beyond • 66 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

On March 28th, the Government Affairs Committee of the Korean National Assembly met to review and discuss a range of bills related to virtual assets. The committee decided to put 18 bills on the agenda, including the newly proposed “Encryption Asset User Protection Act.” This article will analyze the proposed Act and its potential impact on virtual asset markets in South Korea.

Overview of Virtual Asset Regulation in South Korea

South Korea has been at the forefront of cryptocurrency regulation, and virtual asset exchanges in the country are subject to a range of regulatory measures. As of March 2021, virtual asset exchanges are required to obtain Information Security Management System (ISMS) certification, and Anti-Money Laundering (AML) procedures are mandatory. Virtual asset exchanges must also report all transactions to the Financial Intelligence Unit (FIU) and ensure customer verification through Know Your Customer (KYC) procedures.

The Proposed Encryption Asset User Protection Act

The Democratic lawmakers submitted the proposed Act in January 2021 to address concerns related to personal data protection and financial crimes. The aim of the bill is to enhance protection for users of encrypted assets and to ensure that virtual asset service providers adhere to strict standards when processing user data. The Act lays out several rules and regulations for virtual asset service providers, including those related to data protection and the prevention of insider trading.

Potential Impact of the Encryption Asset User Protection Act

If the proposed Act is passed into law, virtual asset service providers in South Korea would need to make significant changes to their operations. Companies would be required to implement robust data protection measures, especially for private key management, and regularly report on their security protocols. The proposed Act also aims to address issues of price manipulation, and if passed, companies would need to implement compliance programs to prevent insider trading.

Advantages of the Encryption Asset User Protection Act

The proposed Act has the potential to provide significant benefits for virtual asset users in South Korea. The implementation of strict data protection measures and other safety protocols would give users greater confidence in virtual asset investments, potentially boosting industry growth. The proposed Act would further establish the legitimacy of virtual assets in the eyes of the South Korean public and regulators, further strengthening the position of virtual asset markets in the country.

Disadvantages of the Encryption Asset User Protection Act

On the other hand, the proposed Act could create significant compliance and regulatory burdens for virtual asset service providers. The cost of implementing IT and security protocols could be substantial, and virtual asset service providers may be forced to pass these costs on to users. Furthermore, the proposed Act could create a regulatory environment that reduces innovation in the virtual asset industry, limiting the ability of start-ups and other smaller virtual asset service providers to thrive.

Conclusion

Overall, the proposed “Encryption Asset User Protection Act” could bring significant changes to South Korea’s virtual asset markets. If passed into law, companies would face new compliance and regulatory requirements, complicating operations and increasing costs. However, the Act could also lead to the introduction of new security protocols and data protection measures, ultimately benefiting users and boosting growth in the virtual asset industry.

FAQs

**1. Why is the South Korean government proposing the Encryption Asset User Protection Act?**
The proposed act aims to enhance protection for users of encrypted assets and to ensure that virtual asset service providers adhere to tight data protection standards.
**2. What impact will the Encryption Asset User Protection Act have on virtual asset users?**
If passed into law, the Encryption Asset User Protection Act could create a more secure and transparent virtual asset marketplace in South Korea, ultimately benefiting users.
**3. Will the Encryption Asset User Protection Act impact smaller virtual asset service providers?**
The regulatory burdens created by the proposed act could create obstacles for smaller virtual asset service providers, limiting industry innovation and growth.
#

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/metaverse/11288.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.