Over a year since the collapse of the Terra ecosystem, created by South Korean citizen Do Kwon, led to a domino effect intensifying a $2 trillion market crash, South Korea has approved the nation’s first independent cryptocurrency law named ‘Virtual Asset User Protection’ to enhance investor protection.
The National Assembly of the Republic of Korea approved the cryptocurrency-related bill today after a prolonged delay. With the approval, South Korea, a significant hub for cryptocurrencies, has formally introduced the Virtual Asset User Protection, the first independent cryptocurrency law consolidating 19 bills to reinforce investor protection.
The Virtual Asset User Protection, defining cryptocurrencies, imposes penalties for violations such as the use of non-public information, market manipulation, and unfair trading practices. It also includes penalties for infringements such as the lack of insurance, reserves, and record-keeping, thereby strengthening investor protection by combining 19 cryptocurrency-related bills.
Chinese Blockchain journalist Colin Wu suggests that the recent surge of Bitcoin Cash (BCH), a hard fork of Bitcoin drawing much attention due to its ongoing rally, might be backed by South Korean investors.
Wu stated, “The reason for the BCH rally could be South Korean investors. In the past 24 hours, over $350 million of trading volume has been recorded in the BCH/KRW trading pair on Upbit, South Korea’s largest cryptocurrency exchange. This contributes 23.58% of the total trading volume for BCH. This is also three times the trading volume of BTC/KRW on Upbit.”
At the time of writing this article, BCH is trading at $307.78, surging by 34.32% in the last 24 hours, breaking past the $300 barrier.