Kim Sun-dong, the Korean Lawmaker, has initiated the Digital Asset Trading Promotion Act. This announcement was reported by Seoul Finance a local media source.
This act reportedly consists of a comprehensive plan that can be used to establish the guideline for developing and promoting the virtual currency. The act also concerns promoting and developing the blockchain technology and virtual currency exchanges. The measures applicable for preventing hacking and fraudulent behavior are also introduced in this bill. The bill further includes clauses related to tax reduction and exemption and further measures against market disturbances.
Kim is concerned and reinstated that it is very important to have a law that will be dedicated to promoting the crypto business. This is also required to prevent companies from leaving Korea. This he states because Bithumb was sold to a Singapore-based consortium. This he cited as having happened despite the crypto-transactions in Korea accounting for a major percentage of the domestic stock market transactions early this year.
He talked about how Japan has legislated the procedures meant to institutionalize the crypto-transactions and on how the US has permitted the trading of the cryptocurrency derivatives.
The bill defines the Virtual Currency as an equivalent of online money with an apparent value. Those who were operating and dealing with these currencies are defined as digital asset trading companies.
Anyone who is willing to operate the digital asset trading business should have a capital investment of 3 billion won, which is approximately $2.66 million. They need to as well have sufficient computational power and workforce along with the required physical equipment. It takes all of these for the Financial Services Commission (FSC) to approve the business for real-time operations.
The bill further states that if the exchange is hacked and its customers have suffered a loss of their crypto assets, the exchange should assume the liability for the damages suffered by the traders.
To enable industry promotion, the bill also provided some examples like the establishment of a committee that will focus on digital asset trading, promotion, training, and tax reduction.
The committee will be taking care of the tasks like dealing with issues that arise when it comes to compliance with the standards and the policies set by the FSC. And, also concerning issues related to administrative agencies.
The Korean Crypto Bill is focused on regulating the industry in a way to retain the crypto businesses within the state. They are not willing to lose the business to other countries. When the bill is passed, companies will not leave Korea after understanding their place and protection in the country.
Get the latest Crypto & Blockchain News in your inbox.