South Korea's Financial Services Commission (FSC) has rolled out a new law aimed at bolstering the protection of virtual asset users, effective from July 19.
This law, the Virtual Asset User Protection Act, builds on previous regulations from March 2021, which required virtual asset service providers (VASPs) to register with financial authorities and adhere to anti-money laundering standards.
The new act, passed on July 18 last year, strengthens oversight of VASPs by addressing issues such as asset safety and unfair trading practices.
Key provisions include mandatory segregation of user funds, insurance or reserve funds to mitigate risks like hacking, and strict monitoring of transactions to identify and report suspicious activities.
VASPs are now required to store customer deposits at banks and pay interest on these funds. They must also keep detailed records of user assets and are subject to more rigorous inspections and penalties for non-compliance.
The FSC aims to create a more secure environment for virtual asset users with these enhanced regulations.
However, they emphasize that while the new rules offer increased protection, risks remain, particularly with transactions involving unregistered service providers or peer-to-peer exchanges
Europe is emerging as the new global crypto hub, propelled by its MiCA regulatory framework, which is attracting investors and platforms alike.
Norway may hit the pause button on cryptocurrency mining later this year. The government announced Friday it will study whether to impose a provisional ban on mining data centers, arguing that energy and grid capacity should be reserved for more pressing needs.
Following the Senate’s approval of the GENIUS Act, U.S. financial institutions are signaling growing interest in stablecoins for settlement and payments.
Bangkok has thrown new weight behind its digital-asset ambitions, carving out a five-year capital-gains tax holiday for Thais who sell cryptocurrencies such as Bitcoin through locally licensed exchanges.