cryptojournalist
South Korea’s finance minister announced that crypto regulation updates should be ready by mid-2025, with new reporting standards expected to roll out by the second quarter. These changes are designed to improve security and investor confidence in the country’s crypto market.
The recently enacted Virtual Asset Protection Act, effective as of July 19, enforces new security measures for virtual asset service providers (VASPs) in South Korea. The law requires VASPs to insure against losses from cyberattacks, keep user assets separate from exchange-owned tokens, and secure customer deposits in banks. Providers are also required to regularly review the tokens they list on exchanges to ensure safer options for investors.
To deter crypto-related crimes, South Korea has introduced strict penalties for violators, including prison sentences and fines that could reach three to five times the illegally obtained profits.
Footnotes:
VASPs (Virtual Asset Service Providers): Companies that manage buying, selling, or exchanging digital assets.
Token Listings: Adding a cryptocurrency to a platform to make it available for public trading.
