South Korea Revamps Crypto Regulation Laws, OKs Virtual Asset User Protection Act
Portfolio Pulse from Murtuza Merchant
South Korea's National Assembly has approved the Virtual Asset User Protection Act, which provides a legal framework for digital assets. The act, which will come into effect next year, requires service providers to keep user assets separate, hold insurance, maintain reserves in cold wallets, and keep a record of all transactions. The Financial Services Commission will supervise service providers, and the Bank of Korea can demand data from them. This comes amid increased scrutiny of virtual assets in South Korea.

July 03, 2023 | 2:50 pm
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The new regulatory framework in South Korea may impact Terraform Labs' LUNA, especially given the increased scrutiny of virtual assets in the country.
The new regulations in South Korea could have a neutral impact on LUNA. While increased regulation can provide more security for investors, it can also lead to increased compliance costs and potential penalties for non-compliance. Given that Terraform Labs faced issues last year, the company might be under more scrutiny under the new regulations.
CONFIDENCE 80
IMPORTANCE 70
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