Yonhap: Legislation to Punish Crypto Market Manipulation May Be Made by South Korea’s National Assembly

The Yonhap News Agency said in an article today that cryptocurrency market manipulation penalties, which are common to all trading entities, are gradually gaining momentum as parliamentary legislation moves forward. However, the financial authority said : “Cryptocurrencies cannot be deemed as financial commodities.” Therefore, it is still unknown whether cryptocurrency manipulation of quotes can be punished like stocks under the Capital Market Act. Recently, the Korea Financial Services Commission has formulated a plan to revise the Enforcement Order of the Specified Financial Transaction Information Act. Among other things, it prohibits crypto asset management companies and employees from trading crypto assets through related management companies. In other words, to eliminate the possibility of share price manipulation by entrepreneurs, trading is to be restricted. Even if the enforcement order of the special law is amended, the problem still exists. This is because it aims to restrict trading to stop the possibility of market manipulation by operators, but does not imply the enactment of market manipulation regulations applicable to all trading entities. Therefore, it is highly likely that Congress will enact regulations on market price manipulation. The government’s position is that it would be difficult to apply price manipulation charges applicable to capital markets directly to cryptocurrencies, so the legislative process is expected to be compromised.