South Korea Financial Regulator Proposes Consumer Protection Rules for Crypto Users
Summary
The Financial Services Commission (FSC) of South Korea has proposed regulations under the Virtual Asset User Protection Act that are aimed at protecting consumers of virtual asset services providers (VASPs). Set to commence on July 19, 2024, the regulations stipulate mandatory monitoring of abnormal activities by VASPs and reporting to the FSC. The scheme also necessitates VASPs to refund customer deposits used and maintain at least 80% of these in cold wallets. Notably, these directives do not encompass non-fungible tokens (NFTs) and central bank digital currencies (CBDCs).
