South Korea Plans to Require Virtual Asset Service Providers to Report Security Incidents Immediately to Financial Regulators

Odaily Report: South Korea's Financial Services Commission announced on November 5 that it will develop new guidelines requiring virtual asset service providers to immediately notify the Financial Supervisory Service and the Financial Security Institute upon discovering security incidents. Currently, such companies are only required to report to the Korea Internet & Security Agency. Financial authorities also plan to enact the "Digital Financial Security Act," applying security regulations comparable to the existing Electronic Financial Transactions Act to industries that hold large amounts of customer information or may cause significant asset losses, including virtual asset service providers, insurance agencies, and the lending industry. Legislation is planned to be completed and the bill submitted in the first quarter of 2027.