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

Odaily Planet Daily News The Korean Financial Services Commission has announced a revised draft of the "Special Act on Preventing Telecom Financial Fraud and Returning Victim Funds." It plans to include funds transferred to crypto assets via phone scams within the scope of victim compensation, and will clarify 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 restitution based on the type and quantity of the assets. If the defrauded assets differ in form from the frozen assets, compensation will be provided based on the actual asset form existing at the time the account was frozen. For cases mixing cash and crypto assets, regulatory authorities will evaluate the crypto assets based on their market price at the time of the freeze to determine the final compensation amount. The public comment period for the revised draft will last until August 24th.