South Korea Plans to Include Crypto Assets in Compensation Scope for Telecom Financial Fraud Victims

Odaily News, the South Korean Financial Services Commission has announced the draft amendment to the "Special Act on the Prevention of Telecom Financial Fraud and the Return of Victim Funds," planning to include funds from phone scams that have been transferred to crypto assets within the scope of victim compensation. It also clarifies the standards for the return and valuation of crypto assets. The relevant regulations are expected to take effect on October 1st. According to the new rules, if the frozen assets are cryptocurrencies, victims will, in principle, receive returns based on the type and quantity of the 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. For cases involving a mix 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 public comment period for the draft amendment will run until August 24th.