The Cryptocurrency User Protection Act, also known as the Cryptocurrency Investor Protection Law, has passed through the Legal Affairs Committee in an important development for South Korea’s cryptocurrency industry, signaling a significant turning point in the legalization of virtual currency.
Following the Political Affairs Committee’s ruling on May 11, the Cryptocurrency Investor Protection Law was swiftly and unanimously approved by the Legal Affairs Committee on June 29, passing what is frequently referred to as the “ninth part of a steep hill” in the legislative process. Given the lack of political opposition, this development points to a high possibility that the measure would be approved in the National Assembly’s plenary session.
If passed, this legislation will be the first comprehensive cryptocurrency law since the Specific Financial Transaction Information Act. The Act aims to address the rights and protection of digital asset investors in the developing cryptocurrency industry by establishing a transparent and secure environment for such investors.
A significant step forward for the virtual asset (cryptocurrency) business has been made with this law’s passage through the legislative process. Its possible adoption in the National Assembly is supported by the National Assembly’s rising acceptance of digital currencies and the requirement for regulatory measures to assure their secure and safe use.
The discussion at the main National Assembly building in Yeouido, Seoul, underscored the significance of this regulation for the safety of bitcoin users, a development that is being keenly monitored by both investors and business insiders.