South Korea’s strict laws on crypto exchanges come into force
The new regulations issued by South Korea’s watchdog to protect user assets on crypto exchanges went into effect on July 19.
The much-talked-about new regulations from South Korea’s financial security regulator, designed to protect users buying and storing crypto assets with virtual asset service providers (VASPs), came into force on July 19.
Titled the “Virtual Asset User Protection Act,” VASPs must take several steps to ensure the protection of user’s crypto, according to a July 17 statement from South Korea’s Financial Services Commission (FSC).
These include taking out insurance against hacking and malicious attacks against the user’s crypto assets, keeping the customer’s crypto assets separate from the exchange’s assets, and a requirement to keep customer deposits “safely kept in banks.”
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Author: Ciaran Lyons
