South Korea Passes Inaugural Crypto Bill After Spate of Scandals

South Korea approved its first standalone digital-asset bill to boost investor protection just over a year after the implosion of tokens created by countryman Do Kwon exacerbated a $2 trillion crypto-market rout.

Parliament on Friday passed the Virtual Asset User Protection legislation, which integrates 19 crypto-related bills, after a prolonged delay. The code defines digital assets and imposes penalties for transgressions such as the use of nonpublic information, market manipulation and unfair trading practices.

The legislation gives the Financial Services Commission the power to oversee crypto operators as well as asset custodians. The Bank of Korea would also be ...