South Korean Lawmaker Proposes ‘Digital Asset Trading Promotion Act’ to Enhance Crypto Exchanging
South Korea has proposed a bill to push crypto trading in the country. The bill recommends the establishment of a commission which would be accountable for the improvement and support of crypto-related issues in the country.
Kim Sun-dong, the lawmaker behind the bill announced last week about the developments in the Digital Asset Trading Promotion Act. He also stressed on the need of such a bill citing the example of Bithumb, which was sold to a Singapore based firm, last month. Mr. Kim a member of National Assembly’s Committee, in his statement to the press, said:
“The Digital Asset, Trading Promotion Act, includes a comprehensive plan for establishing a guideline for promoting the development of virtual currency exchanges and blockchain technology, tax reduction and exemption, measures against hacking damage, and prevention of market disturbances.”
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.
The newly formed commission will be asked to resolve issues inquired by the FSC, as well as organizing connecting relevant administrative agencies. Kim added: “The government is focusing only on the risk of virtual currency and concentrating only on the crackdown of illegal activities … In order to lead the global trend of blockchain technology development, it is necessary to prepare laws and regulations as soon as possible.”