#SouthKoreaCryptoPolicy South Korea has implemented a comprehensive cryptocurrency regulatory framework to enhance investor protection and combat illicit activities. The Virtual Asset User Protection Act (VAUPA), effective since July 2024, mandates that cryptocurrency exchanges store at least 80% of user deposits in cold wallets, separate from the exchange's operational funds. Additionally, exchanges are required to partner with licensed local banks for cash deposit custody and maintain crypto reserves equivalent to the quantity and type of customer deposits. To mitigate risks, crypto services must have adequate insurance or establish reserve funds to address potential hacking incidents or liquidity crises. The Financial Services Commission