Korea to Include Crypto Assets in Scope of Telecom Financial Fraud Victim Compensation

Odaily Planet Daily reports that the Financial Services Commission of South Korea has announced a draft amendment to the "Special Act on Prevention of Telecom Financial Fraud and Return of Victim Funds." The amendment plans to include phone scam funds that have been transferred to crypto assets within the scope of victim compensation, and clearly defines standards for the return and valuation of crypto assets. These regulations are expected to take effect on October 1. According to the new rules, if the frozen assets are cryptocurrencies, victims will, in principle, receive compensation in the same type and quantity of assets. If the defrauded assets differ in form from the frozen assets, compensation will be made in the form of the assets actually existing at the time the account was frozen. In cases involving a mix of cash and crypto assets, regulatory authorities will value the crypto assets based on their market price at the time of freezing to determine the final compensation amount. The public comment period for the draft amendment will remain open until August 24.