Cryptocurrency criminals will face life in prison in South Korea when new consumer protection rules take effect next July, the country's financial regulator said on Wednesday.
In December, the Financial Services Commission (FSC) proposed a consumer protection framework called the Virtual Asset User Protection Act. The rules come into effect on July 19 and cover market manipulation, illegal trading and other violations that lead to criminal penalties or fines, depending on their severity.
“In the case of criminal punishment, a fixed term imprisonment of more than one year or a fine equivalent to three to five times the amount of illicit enrichment is possible,” the FSC said.
The notice added that if the crime proceeds exceed 5 billion won ($3.8 million), the perpetrators could face life imprisonment.
South Korea is strengthening its oversight of the digital asset sector, particularly targeting consumer protection. The initiatives adopted so far force companies and public figures to disclose their cryptocurrency holdings.
