#SouthKoreaCryptoPolicy

🇰🇷 South Korea's Crypto Policy: A Global Benchmark for Investor Protection

South Korea is setting a global standard in cryptocurrency regulation with its comprehensive approach to investor protection and market integrity.

📜 Key Highlights:

Virtual Asset User Protection Act (VAUPA): Effective since July 2024, VAUPA mandates that crypto exchanges store at least 80% of user deposits in cold wallets and segregate user funds from their own assets.

Insurance & Reserves: Exchanges are required to maintain insurance or reserve funds to cover potential losses from hacking or system.

Market Surveillance: Real-time monitoring systems must be implemented to detect and report suspicious trading activities to the Financial Supervisory Service (FSS).

Unfair Trading Practices: The law prohibits insider trading, market manipulation, and other unfair practices, with severe penalties for violations.

Corporate Crypto Investments: Discussions are underway to allow corporate crypto investments, with a focus on issuing real-name corporate trading accounts.

NFT Regulation: Mass-produced NFTs used for payments are classified as virtual assets, subjecting them to the same regulations as cryptocurrencies.

South Korea's proactive stance aims to create a secure and transparent environment for crypto investors, setting a precedent for other nations to follow.

#CryptoRegulation #InvestorProtection #Blockchain #DigitalAssets #FinTech