"Digital Asset Committee to Oversee Unfair Virtual Asset Investigations"…Ruling Party to Soon Propose User Protection Act

Proposed by Representative Yoon Chang-hyun... Digital Asset Committee of 5 Members within FSC
Operators Must Reserve Funds to Protect Users

Yoon Chang-hyun, a member of the People Power Party, is making a parliamentary procedure statement after receiving protests from opposition party members regarding his claim that opposition figures were involved in the recruitment corruption at Eastar Jet during the audit of the Office for Government Policy Coordination held at the National Assembly on the 4th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Lee Ji-eun] To prevent a second 'Terra-Luna incident,' a bill has been proposed to establish a 'Digital Asset Committee' within the Financial Services Commission (FSC) to investigate unfair trading in the virtual asset market, rather than creating an independent organization. Punishment regulations, including confiscation and seizure of assets acquired through unfair trading in the virtual asset market, will also be established.

According to political circles on the 27th, Yoon Chang-hyun, a member of the People Power Party, will formally propose the "Act on Restoring Fairness in the Digital Asset Market and Creating a Safe Trading Environment," which centers on these contents, as early as the 28th.

This bill defines "digital assets" as "electronic certificates that have economic value and can be electronically traded or transferred," and requires digital asset operators to subscribe to insurance or mutual aid or accumulate reserves to prepare for hacking and system failures.

Additionally, to investigate unfair trading using undisclosed information within the virtual asset market, the bill establishes a Digital Asset Committee within the FSC. The Digital Asset Committee will consist of five members, including one chairperson, appointed by the FSC chairman from among: civil servants of grade 2 or higher or senior civil service officials with experience in digital asset trading, finance, or accounting; individuals who majored in law, economics, business administration, or accounting and have held positions equivalent to associate professor or higher at universities or accredited research institutions for over 10 years; and others with extensive knowledge and experience in digital asset trading, finance, or accounting.

Assets acquired through unfair trading will be confiscated or seized, and offenders will face imprisonment for more than one year or fines amounting to three to five times the profits gained or losses avoided due to the violation. However, if the profit or avoided loss exceeds 5 billion KRW, offenders will be sentenced to life imprisonment or imprisonment for more than five years; if it is between 500 million KRW and 5 billion KRW, imprisonment for more than three years will be imposed.

The Digital Asset Committee may take measures such as corrective orders, warnings, cautions, suspension of all or part of business operations, and notifying or reporting to investigative agencies if executives or employees of digital asset operators violate the law. It may also request dismissal recommendations, suspension of duties for up to six months, or disciplinary warnings for the relevant executives or employees.

Regarding this, the ruling party and government will discuss the bill at the "4th Civil-Government-Party Meeting of the Digital Asset Special Committee," which will be held at the National Assembly on the 2nd of next month, with representatives of virtual asset exchanges, blockchain and digital asset experts, and academia participating together.

This content was produced with the assistance of AI translation services.