Korea plans to include crypto assets in the scope of compensation for victims of telecom financial fraud

Odaily Planet Daily News: The Korean Financial Services Commission announced a revised draft of the "Special Act on Preventing Telecom Financial Fraud and Returning Victim Funds," planning to include phone fraud funds transferred to crypto assets within the scope of victim compensation. It also clarifies standards for the return and valuation of crypto assets. The relevant 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 based on the type and quantity of the asset. If the defrauded assets differ in form from the frozen assets, compensation will be made in the form of the asset that actually existed at the time the account was frozen. For 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 revised draft will last until August 24.