Thu, September 26, 2024 at 08:22

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some important news regarding virtual asset exchanges and a proposed bill in South Korea.

  • 
• Annie

  • Oh, interesting!

  • What is this bill about?😊

  
• 

  Kang-hoon

  • Lawmaker Park Sang-hyuk from the Democratic Party of Korea proposed a bill to amend the Virtual Asset User Protection Act (VAA).

  • This amendment aims to prevent virtual asset service providers (VASPs) from offsetting or seizing investors' virtual assets in custody, even if they go bankrupt.

• Annie

  • That sounds like a significant change.

  • Why was this amendment proposed?🤔

  
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• 

  Kang-hoon

  • Currently, the Virtual Asset Act protects users' deposits that are managed in trust by operators.

  • However, it does not protect the users' virtual assets, such as cryptocurrencies themselves.

  • This gap in the law means that in the event of a VASP's bankruptcy, users might not be able to retrieve their assets.

  • 
• Annie

  • I see.

  • So, the new bill would ensure that users' crypto assets are protected first?

  
• 

  Kang-hoon

  • Exactly.

  • The proposed amendment would prohibit the offsetting or seizure of crypto assets held by a business.

  • This means that in the event of bankruptcy, users' crypto assets would be paid to them first, before any other claims.

• Annie

  • That sounds like a good move for investors.

  • But how likely is it that this bill will pass?🤔

  
• 

  Kang-hoon

  • It's hard to say at this point.

  • The bill has just been proposed, and it will need to go through several stages of review and approval.

  • However, given the increasing number of virtual asset exchanges closing down, there is a growing need for such protections.

• Annie

  • I understand.

  • How has the market reacted to this news so far?📉📈

  
• 

  Kang-hoon

  • The market has shown a mixed reaction.

  • Some investors are optimistic about the increased protection, while others are concerned about the potential regulatory hurdles it might create for VASPs.

• Annie

  • That makes sense.

  • Do you think this will have a long-term impact on the virtual asset market in South Korea?

  
• 

  Kang-hoon

  • In the short term, it might create some uncertainty.

  • However, in the long term, it could lead to a more stable and secure market for virtual assets.

  • Investors might feel more confident knowing their assets are protected.

• Annie

  • That's reassuring.

  • Do you think this news is ultimately a positive development for the market?😊

  
• 

  Kang-hoon

  • Yes, I believe it is.

  • Increased protection for investors' assets can help build trust in the market.

  • While there may be some short-term challenges, the long-term benefits of a more secure environment outweigh them.

  • This is definitely a positive development.

• Annie

  • Thank you for the detailed explanation, Kang-hoon!

  • This really helps me understand the implications of the news.👏

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • I'm glad I could help.

  • If you have any more questions about the virtual asset market, feel free to ask.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.