The cryptocurrency landscape in South Korea is going through a rough phase. Amidst all the chaos regarding cryptocurrency and NFT taxation policies, the Korean Financial Service Commission (FSC) has declared criminal punishment against those who manipulate the crypto market in illicit ways. The law would encompass all those who are accused of manipulating cryptocurrency prices or insider trading. Until now, there were no legal guidelines for people caught committing these manipulations. They were not categorized as a separate crime and it was unclear which law applies to them. With the revised law, cryptocurrency manipulations are a crime in South Korea and those involved will face criminal charges.
South Korea has been going through a crypto reformation, with revised taxes and new laws. The government has gone back on its own words and declared that NFTs would be taxed as digital assets. However, strong reaction from the public and opposition political parties has resulted in chaos, and there is no certainty about the imposition of these laws.
The prescribed punishment for crypto manipulation criminals is three to five years of prison with a penalty 3 to 5 times more than the amount of money manipulated. If someone is caught manipulating an amount of more than $4.2 million, the minimum punishment would be five years in prison. The FSC hopes that strict punishments will discourage people from engaging in these illicit and unethical activities. In the present South Korean cryptocurrency sector, this law will have huge implications.