South Korea issues notice on Virtual Asset User Protection Act.

Ritu13

The Financial Services Commission (FSC) of South Korea has issued a legislative notice regarding the enactment of the "Enforcement Regulation of the Virtual Asset User Protection Act" and the "Regulation on the Supervision of the Virtual Asset Industry." These regulations are set to take effect on July 19, 2024.

The details outlined in these regulations include:

1. Expansion of entities not subject to the "Virtual Asset User Protection Act," such as deposit tokens linked to CBDC and NFTs.
2. Clarification of user deposit management institutions and their operations.
3. Requirement to store 80% of user virtual assets in cold wallets.
4. Establishment of standards for participating in mutual aid or accumulating reserve funds to address responsibilities in case of incidents like hacking or computer failures.
5. Definition of potential points in time for the disclosure of undisclosed important information and insider trading, considering the characteristics of the virtual asset market.
6. General prohibition of arbitrary freezing of user access to virtual asset deposits and withdrawals, with specific conditions for exceptional cases.
7. Imposition of obligations on virtual asset trading platforms to monitor abnormal trading activities and the establishment of fine procedures for unfair trading practices.

Yamini003

South Korea is now starting legislation as well.

Samiksha

Various notices are also indispensable.

Jiten171

Hong Kong will definitely need to release such regulations too.