- South Korea’s lawmaker proposes to broaden the definition of “improper solicitation.”
- The proposal seeks to include cryptocurrencies and insider information sharing under the term.
- The lawmaker aims to erase the regulatory gap and ensure equal treatment of financial benefits, including crypto.
Democratic Party lawmaker Kim Young-hwan introduced an amendment to South Korea’s Improper Solicitation and Graft Act to combat crypto insider trading and bribery.
The amendment would expand the definition of “improper solicitation” to include virtual assets and insider information sharing. This can be seen as South Korea’s broader move to strengthen crypto regulations and protect investors.
Closing the Crypto Loophole
With this new proposal, Young-hwan wants to bring transparency and accountability to South Korea’s crypto governance. South Korea currently has listed several financial benefits—like money, securities, real estate, and memberships—as bribes. But, it excludes cryptocurrencies, creating a regulatory gap.
The lawmaker’s proposal would add crypto assets to the definition of improper solicitation, closing this gap. If approved, the law would ensure the equal treatment of cryptocurrencies and other financial benefits. Young-hwan believes the amendment would prevent corruption and the exploitation of cryptocurrencies for personal gain.
In addition, the proposal would expand the definition of improper solicitation to include other forms of bribery and corruption. It also prohibits sharing sensitive information for personal advantage.
South Korea’s Crypto Regulatory Initiatives
The move follows South Korea’s recent regulatory initiatives in the crypto space. They have been working to bring regulatory clarity to the crypto industry to guarantee customer security.
The enactment of the Virtual Asset Users Protection Act was a significant milestone in this effort. Additionally, the country’s strategic tax implementation plans and increased oversight of crypto exchanges aim to promote compliance and stability within the market.
Read also: Crypto Now Safer in South Korea Thanks to This New Foundation
South Korea’s latest regulatory move comes from the Financial Supervisory Service (FSS), which introduced a zero-tolerance policy. There were earlier reports where the FSS Governor Lee Bok-hyun said he will implement a zero-tolerance policy to tackle illegal crypto trading activities.
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