A leaked report reveals that the government of South Korea is planning to phase out legislation for the digital assets industry over the next two years. Additionally, the uncovered document showed that the federal government of the Asian nation is planning to set up a framework that would help protect digital assets’ investors in South Korea.
Further Details on South Korea’s Rumored Cryptocurrency Laws
The leaked report reveals that the country hopes to launch the regulation next year and expects to begin implementing the legislation in 2024. However, there are few details about the content of the concerned regulatory plans that South Korea has for its digital assets industry. The revealed information on the regulation says the country seeks to protect investors.
Reports from domestic news organizations in South Korea say that the Asian country’s planned legislation on the virtual assets industry is termed the “Digital Assets Basic Act.” Also, the country’s federal government reportedly intends to review its state-owned digital fiat currency.
The creation of a solid regulation for the digital assets industry in South Korea is reportedly a top priority for its leadership. Many South Koreans know about and utilize digital assets. Therefore, the country’s leadership needs to execute different activities to protect its citizenry in the digital assets industry.
There are currently no further details on the terms of the Act. However, the legislation recognizes digital assets as part of its financial system.
Moreover, there are no clear indications that the Asian nation would declare BTC or other digital assets as a legal tender. According to information from domestic news organizations in the country, the committee in charge of the Act says it would strengthen the bond between traditional financial institutions and virtual assets’ trading wallets.
The country reportedly intends to supply a system that would authenticate the actual identities of virtual assets’ users in the country for digital-digital settlements. Meanwhile, the government has previously ordered all virtual assets firms in the country to get an operating license to protect the interests of its citizenry.
Crypto Payments Processors in South Korea Warn Citizens against Luna
While South Korea plans to phase out regulations for the virtual assets industry, digital assets exchanges in the country are warning citizens against utilizing the Luna assets. One of the exchanges in the country, Coinone, has reportedly halted all trades on Luna.
Other exchanges have advised their account holders against the asset. The warnings are due to the recent unexpected massive dip in Luna altcoin and token costs.
Most participants in the cryptocurrency industry were shocked when the price of Luna token and stablecoin dipped massively. Due to the event, many individual and corporate investors lost massive amounts of money globally.
The exchanges warn their account holders about the Luna coin and its stablecoin because of concerns that the price could fall further soon. If the remedies utilized don’t prove effective, it could tag this season as a negative turning point in the coin’s history as the stablecoin’s worth keeps falling.