South Korea Advances Telecom-Financial Anti-Fraud Regulations: Crypto Assets to Be Included in Victim Compensation Scope

Odaily Planet Daily News The South Korean Financial Services Commission has announced a revised draft of the "Special Act on Prevention of Telecommunications Financial Fraud and Return of Victim Funds", which plans to include telephone fraud funds transferred to crypto assets in the victim compensation scope, and clarify the return and valuation standards for crypto assets. The relevant regulations are expected to take effect on October 1.

According to the new regulations, if the frozen assets are cryptocurrencies, victims will, in principle, receive compensation 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. In 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 South Korean Financial Services Commission stated that clarifying the form of asset return and the valuation timing 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 revised draft will last until August 24. (Etoday)