- South Korea has recently approved its first independent digital-asset bill aimed at enhancing investor protection.
- In related news, Do Kwon has been sentenced to jail for four months after attempting to use a forged passport.
- CoinMarketCap indicated that both LUNA and LUNC saw their prices rise throughout the past day of trading.
South Korea has recently approved its first independent digital-asset bill aimed at enhancing investor protection, following the collapse of tokens associated with Do Kwon, a South Korean individual, which contributed to a $2 trillion decline in the crypto market. The Virtual Asset User Protection legislation was passed by Parliament on Friday after experiencing significant delays.
This legislation provides a definition for digital assets and establishes penalties for various violations, including the use of nonpublic information, market manipulation, and unfair trading practices. The new law grants the Financial Services Commission the authority to supervise crypto operators and asset custodians.
It also allows the Bank of Korea to investigate such platforms and mandates insurance coverage, reserve funds, and proper record-keeping. Bitcoin and similar assets are covered by these regulations, while tokens deemed securities fall under existing capital-markets law.
In related news, Do Kwon, who was involved in the creation of TerraUSD and Luna coins, both of which collapsed in 2022, resulting in losses exceeding $40 billion, has recently been sentenced to four months in jail in Montenegro for attempting to travel with a forged passport. He is wanted by South Korea and the United States.
Furthermore, the digital-asset sector faced further reminders of ongoing risks when two crypto lenders connected to South Korea abruptly suspended withdrawals in June. In March, a widely publicized murder case in Seoul linked to losses from crypto investments prompted calls for policymakers to expedite the implementation of new regulations.
At press time, the price of Terra Classic (LUNC) stood at $0.00008852 according to CoinMarketCap. This is after the altcoin experienced a 2.20% gain over the past 24 hours. Not only was LUNC up against the Dollar, as it was also able to strengthen against Bitcoin (BTC) and Ethereum (ETH) by 0.89% and 0.24% respectively.
Meanwhile, Terra (LUNA) also printed a 24-hour gain, and was trading at $0.6316 at press time as a result. This was a 3.03% increase against the Dollar, as well as a 1.69% increase against BTC and a 1% gain against ETH.
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