South Korea Introduces Fresh Regulations with Virtual Asset Protection Act

South Korea’s Act on the Protection of Virtual Asset Users took effect on July 19, 2024. To enhance user protection and market stability. 

Revised from its 2021 version, the act addresses unfair trading and user safety by requiring virtual asset service providers (VASPs) to register, adhere to anti-money laundering rules, and implement additional safeguards. It mandates that VASPs separate user assets, insure against liabilities, and report suspicious transactions. 

The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have prepared for the act’s implementation with detailed regulations and tests. Users are still advised to stay vigilant due to the inherent risks and volatility of virtual assets.

Clever Robot News Desk 23^rd July 2024