A South Korean MP has declared forming a draft private members’ bill to outlaw crypto market manipulation.
According to News1, the proposal is the brainchild of the opposition People Power Party MP Lee Ju-hwan, who has scrutinized designers of the existing legal framework for overly centered anti-money laundering protection in all things crypto-related.
In the nation, courts and prosecutors have earlier charged individuals who have been indicted of market manipulation under existing fraud laws.
Lee alleges that there is no specific legal basis to address unscrupulous trade practices in cryptoverse for market price manipulation, crypto speculation offenses, or excessive fees by virtual asset service providers (VASPs).
Lee gave the case of a domestic crypto exchange whose executives consented to list a token in exchange for crypto payments worth “hundreds of millions of dollars” – as part of a broader plan to drive up token prices. He also spoke about a company whose CEO was sentenced to prison time after “arbitrarily manipulating” trading figures.
Nevertheless, the lawmaker claimed that existing regulations did not concern 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 continued that “frequent” abuses of power were now common in the crypto industry, claiming that his bill would 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 passed, MPs could vote on it in the first half of this year.
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