Korea pushes new telecom and financial anti-fraud regulations: crypto assets to be included in scope of victim compensation

Odaily Planet Daily News The Financial Services Commission of South Korea has announced a draft revision of the "Enforcement Decree of the Special Act on Prevention of Telecommunications and Financial Fraud and Recovery of Damaged Funds," planning to include funds transferred to crypto assets in phone fraud cases within the scope of victim compensation and to clarify the standards for returning and valuing 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 in the form of the same type and quantity of assets. If the defrauded assets differ in form from the frozen assets, compensation will be made based on the form of assets actually existing at the time the account was frozen. For cases involving a mixture of cash and crypto assets, regulators will value the crypto assets based on their market price at the time of freezing to determine the final compensation amount. The Financial Services Commission stated that clarifying the form of asset return and the valuation point will help achieve faster and fairer compensation in complex cases where funds from multiple victims are mixed. It is reported that the public comment period for the draft revision will last until August 24. (Etoday)