#CryptoCharts101

In a significant 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.

Risk insurance: Platforms are required to provide insurance or establish reserve funds to address security incidents or financial crises.

Compliance with standards: Implementation of anti-money laundering (AML) procedures and customer identity verification (KYC) to ensure market integrity.

Oversight and accountability: Granting regulatory bodies broad powers to monitor platforms and impose penalties on violators.