Republic of Korea: Passed Bill Regulating Asset Market Fairness (Bill No 2117994)

On 24 April 2023, the proposed Bill for regulating fairness in the digital asset market and creating a safe trading environment (Bill No 2117994) passed the first review by the ROK National Assembly. The Bill seeks to establish rules to combat unfair trading of digital assets and to protect users from unfair transactions in the digital asset market. In particular, the Bill prohibits unfair trade practices such as the use of undisclosed relevant information, price manipulation, and fraudulent trading. For this purpose, the Bill establishes obligations on digital asset operators, such as regular reporting obligations. Businesses and individuals would be expected to self-report irregularities and could face stiff penalties for not doing so, including fines and prison sentences ranging from one year to life. The Financial Services Commission will be empowered to monitor and carry out investigations related to digital asset operations.