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 · 2026-04-12T02:48:18+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 02:48:18

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ME News Report, April 11 (UTC+8), South Korea’s financial regulatory agency is considering whether to include a clause on “confiscating principal in virtual asset insider trading cases” in the second phase of legislation expected to be announced later this year. According to the current Virtual Asset User Protection Act, the government only has the authority to confiscate investment principal in cases of fraudulent transactions or market manipulation. There is no legal basis to confiscate investment principal for insider trading. 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 second phase of the law. In the stock market, all illegal trading crimes can lead to the confiscation of investment principal. (Source: PANews)

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