South Korea proposes jail terms for crypto market manipulation

The Financial Services Commission of South Korea (FSC) has proposed criminal penalties for misconduct in the cryptocurrency market, including price manipulation and insider trading. CoinDesk reports.

The FSC has submitted the proposal to the national parliament in a report, which will guide the drafting of legislation for the crypto industry.

The regulator’s recommendations call for at least one year in prison and a fine equal to three to five times the unlawfully earned profit. If the amount of such profit exceeds 5 billion won (about $4.2 million), the prison term would rise to five years.

From January 1, 2022, a tax on capital gains from cryptocurrency transactions is being introduced in South Korea. The rate will be 20% of gains above 2.5 million won (about $2,100 at the time of writing).

In November, the FSC said there would be possible taxation of NFT trades, although previously the agency asserted that such tokens generally do not fall under the definition of virtual assets and are not regulated as such.

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