Per News1, the measure is the brainchild of the opposition People Power Party MP Lee Ju-hwan, who has criticized architects of the existing legal framework for being overly focused on anti-money laundering protection in all things crypto-related.
Courts and prosecutors in the country have previously charged individuals who have been accused of market manipulation under existing fraud laws, but Lee claims that there is no specific legal basis to address unethical trade practices in the crypto sphere for market price manipulation, crypto speculation offenses or the imposition of excessive fees by virtual asset service providers (VASPs).
Lee, gave the example of a domestic crypto exchange whose executives agreed to list a token in exchange for crypto payments worth “hundreds of millions of dollars” – as part of a wider plan to drive up token prices. He also spoke about a company whose CEO was sentenced to prison time after “arbitrarily manipulating” trading figures.
However, the lawmaker claimed that existing regulations did not specifically pertain to the crypto sector.
If passed, the legislation would also seek to punish the perpetrators of insider trading and purposeful info leaking on forthcoming listings.
And the MP added that “frequent” abuses of power were now common in the crypto industry, claiming that his bill would help promote “fair trade and investor protection in the virtual asset market.”
The bill will head to the financial or legal committee of the lower house. If approved, MPs could vote on it in the first half of this year.