South Korean Virtual Assets Law to Protect Consumers

Understanding the New Regulations and Their Impact on the Crypto Industry
South Korean Virtual Assets Law to Protect Consumers
Author:

South Korea's new Virtual Assets Law, effective July 19, aims to protect users of virtual assets like Bitcoin and Ethereum. The Act mandates virtual asset service providers (VASPs) to manage user deposits securely and imposes penalties for unfair trading practices. The Financial Services Commission (FSC) will oversee the implementation, ensuring VASPs adhere to strict safety standards. The law focuses on consumer protection, market integrity, and stringent security measures, including storing 80% of customer digital assets in cold wallets.

Key Highlights:

  1. Consumer Protection:

    • Strict management of user deposits and severe penalties for unfair trading.

  2. Market Integrity:

    • Emphasis on fair operations and transparency.

Conclusion:

The law marks a significant step in regulating South Korea's crypto market, fostering a secure environment for investors.

Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.

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