South Korean authorities consider confiscating principal in crypto insider trading cases

South Korean financial authorities are considering a plan to confiscate the principal investment in crypto insider trading cases, Newsis reported. The measure is being reviewed for inclusion in the upcoming Digital Asset Basic Act, also known as the second phase of virtual asset legislation, which is expected to be announced in the second half of this year. South Korea's Financial Supervisory Service recently proposed the idea to the Financial Services Commission, which is now deliberating on its inclusion in the new law. Under the current Virtual Asset User Protection Act, the government can only seize principal investments in cases of fraudulent transactions or market manipulation. There is currently no legal basis for confiscating funds related to the use of undisclosed information.