The ruling party of South Korea has proposed a new bill that aims to limit crypto-related companies’ ability to trade digital assets and increase their liability in case of a hack, local news outlet Naver reported today.
The enactment, dubbed “Virtual Assets Act” and presented by the Democratic Party lawmaker Lee Yong-woo, will prohibit crypto firms from engaging in “unfair practices” such as trading (including the so-called “wash trading”), buying, and selling of digital assets if this can affect their prices. Essentially, companies won’t be able to act as market makers to curb risks of price manipulation.
The upcoming regulation in Korea proposed by the ruling party will be a big burden on crypto companies based in Korea.
It bans trading that changes price aka market making. It also requires KYC, insurance, and hacking prevention for all and have to reimburse in a case of hack
— Doo (@DooWanNam) May 6, 2021
For failing to comply with these trading restrictions, K