A new bill proposed in South Korea is set to increase punishment for people who engage in crypto fraud. The bill, if approved, may come to power in 2023.
People of South Korea, especially crypto enthusiasts, were in disbelief when the Terra ecosystem crashed and lost many people millions of dollars worth of cryptocurrencies. After the crash of Terra, South Korean officials sought to add more regulations regarding some aspects of the crypto world. One of these regulations might be tightening penalties for people who commit crypto fraud.
The National Assembly and the Financial Services Commission (FSC) of South Korea are working together on passing the proposed bill that would disincentivize crypto scammers from being involved in fraud or other illicit activities.
There are 14 other bill proposals in the National Assembly that are under review at the moment. However, the recent bill is somewhat more urgent and could be approved in 2023. South Korean legislators are also working on the Digital Asset Basic Act, which will provide a clear framework for digital assets, web 3.0, and crypto adoption. It’s clear that South Korea is one of the few countries that is embracing crypto adoption at a larger scale.
South Korean officials did not state the magnitude of these tightened penalties that the bill entailed. However, it is certain that crypto-related activities in South Korea might be under scrutiny.
In other news, South Korean authorities are still looking for Do Kwon, founder of Terra. Similarly, Interpol added Do Kwon to the Red Notice list. Kwon was asked to surrender his passport or the foreign ministry of South Korea would cancel it.