South Korea Advances Crypto Bill Targeting Multi-Level and Door-to-Door Sales

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South Korea Advances Crypto Bill Targeting Multi-Level and Door-to-Door Sales

Bill To Focus on Criminal Activities

The South Korean government has announced that the legislation to regulate digital currencies “is expected to focus on cracking down on criminal activities,” such as “multi-level crimes,” Yonhap News reported.

The current control for criminal exercises does not expressly incorporate computerized cash. An advanced cash team has been set up by significant government offices including the Ministry of Justice, the Financial Services Commission (FSC), the Ministry of Strategy and Finance, and the Fair Trade Commission. As indicated by the production, its undertaking is “to clear up the justification for discipline” for advanced cash related violations and prescribe pertinent corrections to the laws and directions.

The Ministry of Justice said a week ago that the discipline lead will be essentially expanded from “5 years detainment or fines of under 50 million won” to “10 years detainment or punishment of under 500 million won,” the production itemized, including that:

It also plans to establish confiscation rules for criminal profits to increase the effectiveness of punishment.

Presently, there is no evident law seeing advanced monetary standards seized as criminal continues. A month ago, news.Bitcoin.com provided details regarding Suwon District Court in South Korea deciding that the seizure of bitcoins by the police in a criminal case was improper.

Amending Existing Regulations

The train framework for virtual money exchanging exercises is likewise incorporated into the alteration bill of the Act on Regulation of Similar Receiving Act, as indicated by the news outlet. South Korea Advances Crypto Bill Targeting Multi-Level and Door-to-Door Sales”The reason for this Act is to secure great merchants and to build up a sound monetary request by directing ‘comparative getting practices’,” Article 1 of the law clarifies.

“Comparable accepting conduct” is characterized in Article 2 of the law as “a demonstration that does not get approval or consent under different laws and does not enlist or advise and secures reserves from an unspecified number of people.”

Since the administration does not see advanced monetary standards as monetary standards or money related items, it is endeavoring to manage them through the above Act, Yonhap News nitty gritty, including that:

The government will set up regulations for securing consumer protection and transparency of transactions for virtual currency traders who conduct sales activities such as the sale, intermediation, and arbitration of virtual currencies in the amendment.

These directions incorporate the commitment to restrict exchanges on the Door-to-Door Sales Act, including multi-level and way to-entryway deals, the news outlet portrayed.

Likewise, the legislature will likewise correct some Financial Information Acts to force an against illegal tax avoidance (AML) commitment on advanced money exchanging including expecting trades to report suspicious exercises to the Financial Intelligence Unit. A FSC official was cited saying:

The amendment plan is being revised with the aim of passing the revision bill of the Act on Regulating Receiving Behavior in the National Assembly this year…We will clarify the grounds for punishment for similar receiving behaviors that imply virtual currency investment by adding the phrase ‘virtual currency or virtual currency trading.’

 

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