The recent tragic murder case involving a dispute over cryptocurrencies has rekindled the efforts towards crafting a concrete crypto policy in South Korea.

In the aftermath of a horrifying incident, where a woman was killed following a conflict over digital assets, South Korean legislators are now advocating for more stringent regulations around digital currencies. A Bloomberg report from May 18 shed light on this alarming case – a Korean woman was kidnapped on March 29, and was later found dead due to an argument allegedly originating from losses associated with cryptocurrencies. This grim incident, along with the downfall of Do Kwon’s Terra Money ecosystem in May of the previous year, adds to the growing number of scandals in the digital asset space.

The urgency to legislate the country’s inaugural standalone cryptocurrency bill has reportedly intensified due to this recent murder case. The bill is likely to be passed in a parliamentary vote set to take place later in the month.

Back Hyeryun, a legislator representing the Democratic Party of Korea, communicated to Bloomberg that there is now a bipartisan agreement on the urgent need to establish a cryptocurrency law. Emphasizing the priority of investor protection, she acknowledged the necessity of concentrating on a single issue to make swift progress.

The proposed bill, termed the Virtual Asset User Protection Bill, amalgamates 19 distinct crypto-related regulations into a singular standalone law.

A draft of the legislation reviewed by Bloomberg delineates explicit legal definitions for virtual assets and imposes punitive measures for offenses like insider trading and market manipulation. Moreover, the legislation proposes granting the Financial Services Commission the authority to supervise crypto entities and the custody of assets.

The bill also advocates for digital asset companies to secure insurance to safeguard themselves against cyberattacks. Further, it stipulates more rigorous rules regarding reserve funds and account management. These regulations are intended to be applicable to cryptocurrencies like Bitcoin, while existing capital market laws would be applicable to tokens considered securities by the government.