PANews reported on April 16 that according to Bizwatch, South Korean lawmakers have proposed amendments to the Virtual Asset User Protection Act, aiming to strengthen the supervision of speculative cryptocurrency investment chat rooms on social media and enhance the supervision of crypto exchanges. The bill, proposed by Min Byoung-dug, Kang Hoon-sik and others from the Democratic Party of Korea (DPK), requires these chat rooms to register with the Financial Services Commission (FSC) as quasi-investment advisory companies. Under current laws, such entities are not allowed to compensate for investment losses, guarantee returns or promote false profit rates. The proposed amendments also require crypto exchanges to report to the Financial Services Commission any formulation or modification of their terms and conditions.
In addition, according to Digital Asset, lawmaker Min Byoung-dug has also proposed a bill to protect customer assets in the event of a cryptocurrency exchange bankruptcy. The amendment aims to ensure that customers’ rights to recover their assets are not considered general unsecured claims, which would otherwise be distributed among the bankruptcy estate.
