- The brand new bundle of legal guidelines contains modifications to a number of present legal guidelines aimed toward offering authorized help to victims of monetary fraud.
- Up to date guidelines for phone and on-line banking fraud will ease the method of sharing data between banks.
- This modification to the invoice reveals that South Korea is creating the mandatory framework for regulated tokenized property.
South Korea’s Nationwide Meeting has permitted 11 broadly supported payments centered on public welfare and help. Their targets are to strengthen catastrophe reduction, strengthen fiscal protections and create clearer guidelines for rising industries.
The brand new package deal of legal guidelines contains modifications to a number of present legal guidelines aimed toward offering authorized help to victims, strengthening safety techniques, and selling monetary and market innovation. One of many important modifications was to the nation’s core catastrophe regulation (the Framework Act on Catastrophe and Security Administration), which made supporting victims of main accidents and bushfires an official long-term mandate for the federal government.
The modifications will enable the federal government to determine a Central Catastrophe Sufferer Assist Middle to offer organized help and compensation to households affected by main tragedies. These embrace occasions such because the December 29, 2024 Jeju Air crash (the nation’s worst air catastrophe in a long time) and the large forest fires within the southeast in 2025.
What the brand new regulation means for cryptocurrencies
One regulation amends the Phone and On-line Banking Fraud Rules (Particular Legislation on Prevention of Losses and Refund of Losses from Telecommunications Monetary Fraud) to make it simpler for banks, phone corporations, and police to share data.
Whereas this doesn’t immediately identify cryptocurrencies, it’s extremely related to the cryptocurrency area, particularly since cryptocurrency scams and phishing are some of the widespread methods individuals are focused in Asia (and world wide). Fraudsters typically use faux pockets hyperlinks, spoof exchanges, and DeFi platforms to steal cash.
Associated: South Korean crypto trade opposes proposed 20% possession cap
As well as, higher collaboration between banks, telcos, and authorities will allow them to trace and cease suspicious funds, together with transfers of crypto wallets and addresses. Though this regulation shouldn’t be particularly about cryptocurrencies, it strengthens techniques to fight on-line and fintech fraud and likewise covers cryptocurrency fraud. This could possibly be step one in direction of enacting a regulation particularly for cryptocurrency crimes sooner or later.
The brand new regulation additionally contains amendments to the Monetary Funding Providers and Capital Markets Act and the Act on Digital Registration of Shares and Debt Securities, that are essential for digital markets.
The amendments are anticipated to determine a authorized foundation for issuing tokenized securities inside a regulated framework. South Korea can also be actively engaged on constructing a safety token providing (STO) framework that goals to introduce digital property into the mainstream monetary system whereas sustaining investor safety.
Though these modifications don’t legalize the wholesale sale of cryptocurrencies, they do sign that South Korea is creating the mandatory framework for regulated tokenized property by combining conventional investments with blockchain-based tokens.
Associated: South Korea reopens doorways to company cryptocurrencies for the primary time in 9 years
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