South Korea Implements Virtual Asset Protection Laws on July 19

New regulations aim to enhance the security and oversight of virtual asset transactions in South Korea.
South Korea Implements Virtual Asset Protection Laws on July 19

The South Korean government is set to enforce the Act on the Protection of Virtual Asset Users (PVAU) on July 19. The law mandates the Financial Services Commission (FSC) to oversee virtual asset service providers (VASPs) and ensure customer funds are managed securely. VASPs must segregate customer funds, invest them in risk-free assets, and store a minimum of 80% of customer digital assets in cold wallets. The FSC will also form a committee to develop policies for unregulated virtual assets and enforce rules against abnormal trading activities.

This regulatory framework reflects South Korea's intensified efforts to safeguard investors and enhance market integrity.

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