In a landmark move for South Korea’s cryptocurrency sector, the Cryptocurrency User Protection Act (also known as the Cryptocurrency Investor Protection Law) has successfully passed through the Legal Affairs Committee, marking a momentous milestone in the legislative process for digital assets.
Coming in the wake of the May 11 verdict by the Political Affairs Committee, the swift and unanimous passage of the Cryptocurrency Investor Protection Law through the Legal Affairs Committee on June 29 has crossed what is often referred to as the ‘ninth part of a steep hill’ in the law-making process. This progress suggests a strong likelihood of the law being passed in the National Assembly’s plenary session, given the absence of partisan disagreement.
If enacted, this legislation will be the first comprehensive law related to cryptocurrencies since the Specific Financial Transaction Information Act. The legislation aims to provide a clear and secure framework for investors in digital assets, addressing their protection and rights within the burgeoning cryptocurrency sector.
The progression of this law through the legislative process signifies a crucial step forward for the virtual asset (cryptocurrency) industry. Its potential enactment in the National Assembly underpins a growing recognition of digital currencies and the need for regulatory measures to ensure their safe and secure use.
The meeting at the main National Assembly building in Yeouido, Seoul, highlighted the importance of this law for the protection of cryptocurrency users, a fact that is being closely watched by investors and industry insiders alike.