#SouthKoreaCryptoPolicy South Korea has implemented a comprehensive regulatory framework for cryptocurrencies to enhance investor protection and market integrity. The Virtual Asset User Protection Act (VAUPA), effective since July 2024, mandates that crypto exchanges store at least 80% of user funds in cold wallets, segregate user assets from operational funds, and maintain insurance or reserve funds to cover potential losses from hacks or liquidity crises. Exchanges are also required to monitor and report suspicious activities to the Financial Services Commission (FSC). Additionally, discussions are underway for a second phase of regulation, focusing on transparency, stablecoin oversight, and institutional participation, with implementation expected in the second half of 2025. (binance.com, coindesk.com, theblock.co)