#SouthKoreaCryptoPolicy Here's a summary of the latest key developments regarding South Korea's crypto policy, focusing on..

Here's a summary of the latest key developments regarding South Korea's crypto policy, focusing on the most significant recent event and ongoing trends:

1. Landmark Regulation Takes Effect (July 19, 2024):

The *Virtual Asset User Protection Act** officially came into force on July 19, 2024. This is South Korea's first comprehensive legal framework specifically dedicated to regulating cryptocurrencies and protecting users.

*Key Provisions:**

*Stricter Custody Rules:** Exchanges must hold over 80% of user deposits in cold wallets (offline storage). They must also maintain reserves equal to the market value of user deposits and keep them separate from company funds. Proof of reserves is mandated.

*Mandatory Insurance/Reserve Funds:** Exchanges are required to set aside a portion of their fees into reserve funds or obtain insurance to cover losses from incidents like hacks or computer failures.