South Korea Introduces Historic Crypto Investor Protection Law, Strengthening Existing Framework
South Korea’s Financial Services Commission has enacted its first law to protect crypto investors, known as the Virtual Asset User Protection Act.
Effective from Thursday, this law addresses unfair trading practices, responding to past incidents like the Terra-Luna crash and FTX’s collapse. It requires crypto exchanges to deposit user funds in banks, pay interest on these deposits, and store assets in cold wallets. Exchanges must also obtain insurance and monitor transactions for irregularities.
This legislation aims to create a safer and more regulated environment for crypto users, following earlier regulatory measures that required exchanges to register with the Financial Intelligence Unit and implement stringent anti-money laundering procedures.
Clever Robot News Desk 22nd July 2024
