#SouthKoreaCryptoPolicy

In a significant step towards enhancing the security of the cryptocurrency market, the Virtual Assets 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 segregation: Trading platforms must store 80% of user deposits in cold wallets, separating 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) measures and Know Your Customer (KYC) verification to ensure market integrity.

Oversight and accountability: Regulatory authorities are granted broad powers to monitor platforms and impose penalties on violators.