The Korean regulatory agency is considering whether to include the confiscation of proceeds from virtual asset insider trading in the second phase of the bill.

MeNews · 2026-04-12T07:28:48+00:00

The Korean financial regulatory authority is considering including a clause in the second phase of the law to "confiscate the principal in virtual asset insider trading cases," currently only allowing the confiscation of investment principal in cases of fraudulent trading or market manipulation. This move is under review by the Financial Services Commission.

MeNews

2026-04-12 07:28:48

Abstract generation in progress

ME News report: April 11 (UTC+8). Korea’s financial regulators are considering whether to include a clause on “confiscation of principal in virtual asset insider trading cases” in the second phase of legislation expected to be announced in the second half of this year. Under the current Virtual Asset User Protection Act, the government is only authorized to confiscate investment principal when there are fraudulent transactions or market manipulation. For insider trading, there is no legal basis to confiscate investment principal. Therefore, the Financial Supervisory Service has recently submitted this issue to the Financial Services Commission, which is currently reviewing whether to incorporate it into the law’s second phase. In the stock market, all illegal trading criminal acts can result in confiscation of investment principal. (Source: PANews)

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