South Korea Moves to Cover Crypto in Restitution for Telecom Financial Scams
AI Market Summary
South Korea's FSC proposed rules to include crypto assets in victim compensation for telecom financial fraud, setting standards for return and valuation using market prices at the time of freezing. If adopted on Oct 1 after the Aug 24 comment deadline, the framework would reduce legal uncertainty around frozen crypto and strengthen consumer-protection rails, which may improve institutional comfort with custody and compliance processes in the local market.
Impact level
● Medium
Affected assets
BTC/USDT-0.97%
AI Insight · BTC/USDTAI Insight
● Neutral
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
South Korea's Financial Services Commission (FSC) has published a draft amendment to the Enforcement Decree of the Special Act on Prevention of Telecommunication Financial Fraud and Recovery of Victim Funds, aiming to bring funds converted into crypto assets within the scope of victim compensation. The proposal also sets out clearer rules for returning and valuing cryptocurrencies.
According to the draft released on July 16 (UTC+8), the revised framework is expected to take effect on October 1. When frozen assets are cryptocurrencies, restitution will generally be made based on the type and amount of the assets. If the defrauded assets are not the same form as the frozen assets, compensation would be provided in the form of the assets actually held at the time the freeze was imposed.
For cases involving both cash and crypto, authorities would value the crypto portion using its market price at the time of freezing to determine the final compensation amount. Public comments on the draft will be accepted through August 24. (Source: ODAILY)
