TechFlow news — On June 25, according to the Economic Daily News, South Korea's State Council passed the Enforcement Decree of the "Virtual Asset User Protection Act," which will take effect on July 19. This decree aims to protect virtual asset users and regulate the order of the virtual asset market. Under the new law, Virtual Asset Service Providers (VASPs) must secure user deposits through banks and store users' virtual assets in offline environments isolated from the internet to prevent risks such as hacking attacks.
In addition, the Financial Services Commission will establish a Virtual Asset Committee responsible for providing policy and regulatory advice on cryptocurrency markets. The new law also establishes criminal penalties and fines for unfair trading practices such as insider trading using non-public material information and market manipulation. Virtual asset service providers will have the right to suspend users' cash and virtual asset withdrawals and deposits under reasonable circumstances.
