PANews reported on April 16 that according to Bizwatch, Korean lawmakers have proposed an amendment to the Virtual Asset User Protection Act aimed at strengthening regulation of speculative cryptocurrency investment chat rooms on social media and enhancing oversight of crypto exchanges. The bill, proposed by Democratic Party of Korea (DPK) lawmakers Min Byoung-dug and Kang Hoon-sik, requires these chat rooms to register with the Financial Services Commission (FSC) as quasi-investment consulting entities. Under current law, such entities are prohibited from compensating investment losses, guaranteeing returns, or advertising false profit rates. The proposed amendment also requires crypto exchanges to report any establishment or modification of their terms and conditions to the Financial Services Commission.
Additionally, according to Digital Asset, lawmaker Min Byoung-dug has proposed a bill aimed at protecting customer assets in the event of a crypto exchange bankruptcy. The amendment seeks to ensure that customers' rights to recover their assets are not treated as general unsecured claims, which would otherwise be distributed in bankruptcy property.
