Newsis reported that financial authorities are reviewing whether to include a plan to confiscate investment principal for transactions involving the use of undisclosed information in virtual assets in the Digital Asset Basic Act (Virtual Asset Phase 2 Act), which is expected to be announced around the second half of this year. The Financial Supervisory Service recently delivered the relevant content to the Financial Services Commission, which is considering whether to reflect it in the Phase 2 Act. However, under the current Virtual Asset User Protection Act, the government is only allowed to confiscate investment principal for fraudulent unfair transactions and market manipulation charges, and there is no legal basis to confiscate investment principal for charges of using undisclosed information.
