South Korea Considers Seizing Principal in Virtual Asset Insider Trading Cases

South Korea's financial regulators are contemplating the inclusion of a clause to seize the principal in virtual asset insider trading cases in the upcoming second phase of legislation expected later this year. According to PANews, under the current Virtual Asset User Protection Act, the government can only confiscate investment principal in cases of fraudulent transactions or market manipulation. There is no legal basis for seizing the principal in insider trading cases. 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 improper trading crimes can result in the confiscation of the investment principal.