ChainCatcher message, Bithumb announced that in order to protect investors and establish a sound market order, Bithumb is actively responding to unfair trading practices such as using undisclosed information, market manipulation, and illegal trading before the implementation of the "Virtual Asset User Protection Act" (July 2024). They plan to set up a reward of up to 300 million KRW for reporting unfair trading, which will be paid to those whose reported actions are subject to disciplinary action or confirmed by the court as valid (first report).

According to ChainCatcher news and TokenPost reports, South Korea is set to implement a virtual asset user protection law, introducing a new strict regulatory framework for the digital asset market to enhance market transparency and security. The law specifically focuses on the regulation of NFTs, requiring companies that issue NFTs considered virtual assets to comply with stringent assessment and reporting standards.The Financial Services Commission has released detailed guidelines that clarify the classification criteria for NFTs as virtual assets, including parameters such as issuance scale, divisibility, and trading utility. Operators must ensure that their business activities comply with regulatory requirements to avoid criminal penalties. The new regulations will take effect on July 19, marking the beginning of South Korea's era of regulation for digital assets like NFTs.

ChainCatcher news, the Financial Supervisory Service (FSS) of South Korea has confirmed that the token delisting standards will be included in the best practices for compliance with the Virtual Asset User Protection Act, which will be released in early June. An official from the Financial Supervisory Service stated in a call with Bloomberg on Tuesday that the upcoming "Best Practices for Compliance with the Virtual Asset User Protection Act" will not only include listing standards for virtual assets but also guidelines on whether to maintain the trading of listed virtual assets. The guidelines will provide a basis for cryptocurrency issuers to delist in case of issues. The guidelines are expected to be released from late May to early June.Currently, the Financial Supervisory Service is developing guidelines to support cryptocurrency exchanges in self-regulation before the implementation of the Virtual Asset User Protection Act in July. The plan includes best practices that contain standards for the issuance volume, circulation, and trading support of virtual assets, prohibits the listing of virtual assets with a history of hacking incidents, and requires the release of a Korean white paper and technical manual when listing virtual assets overseas.

ChainCatcher news, the Financial Services Commission (FSC) of South Korea has issued a legislative notice regarding the formulation of the "Regulations for the Enforcement of the Virtual Asset User Protection Act" and the "Regulations for the Supervision of the Virtual Asset Industry," both of which detail the legal authorizations.The contents include: First, the addition of objects not applicable to the "Virtual Asset User Protection Act," such as deposit tokens linked to CBDC and NFTs; second, clarification of the user deposit management institutions and their operational methods; 80% of users' virtual assets must be stored in cold wallets; fourth, the establishment of standards for mutual insurance or accumulated reserves to address responsibilities for incidents such as hacking and computer failures; fifth, defining possible points in time for the leakage of undisclosed important information and insider trading based on the characteristics of the virtual asset market; sixth, in principle, arbitrary freezing of users' virtual asset deposits and withdrawals is prohibited, with exceptions allowed for specified circumstances; seventh, the obligation for virtual asset exchanges to monitor abnormal trading and establish a penalty procedure for unfair trading behaviors.It is reported that the formulation of these enforcement and regulatory regulations is expected to be announced legislatively from December 11, 2023, to January 22, 2024, and will come into effect on July 19, 2024, after review by the National Tax Service and other procedures.