South Korea's Financial Services Commission (FSC) announced new regulations under the Act on the Protection of Virtual Asset Users, effective July 19, 2024, to enhance investor protection and regulate the crypto industry.
The Act defines virtual assets covered by the regulation and obligates Virtual Asset Service Providers (VASPs) to securely manage customer deposits and assets, including statutory sanctions against unfair trading practices.
Non-fungible tokens (NFTs) and certain digital tokens are excluded from the Act's scope.
The FSC's proposal is open for public consultation until January 22, 2024, representing a significant move towards a secure and orderly virtual asset market in South Korea.