#SouthKoreaCryptoPolicy 🇰🇷💱

In an important step towards enhancing the security of the cryptocurrency market, the Virtual Asset User Protection Act came into effect in South Korea in July 2024. This law aims to protect investors and ensure transparency in transactions.

✅ Key Features of the Law:

Asset Separation: Trading platforms must store 80% of user deposits in cold wallets and separate user funds from platform funds.

Insurance Against Risks: Platforms are required to provide insurance or create reserve funds to address security incidents or financial crises.

Compliance with Standards: Implementation of Anti-Money Laundering (AML) measures and Know Your Customer (KYC) verification to ensure market integrity.

Supervision and Accountability: Granting regulatory bodies extensive powers to monitor platforms and impose penalties on violators.

🌐 Future Trends:

South Korea plans to regulate cross-border transactions of virtual assets starting from the second half of 2025, imposing registration and monthly reporting requirements for the companies involved.

These steps demonstrate South Korea's commitment to providing a safe and transparent trading environment, enhancing investor confidence in the digital market.