Korea Drafts Telecom Fraud Rules to Include Crypto Asset Victim Compensation
2026-07-16 11:06

Woofun AI reports that the Financial Services Commission of South Korea has released a draft amendment to the "Special Act on Prevention of Telecom Financial Fraud and Return of Victim Funds." The proposal expands victim compensation to include funds transferred to crypto assets via phone scams, establishing clear standards for asset return and valuation. Under the new framework, victims will typically receive compensation in the same type and quantity of frozen cryptocurrencies. If the defrauded and frozen assets differ, compensation matches the assets present at the time of freezing. For mixed cash and crypto cases, authorities will value crypto based on market price at freezing. The public comment period closes on August 24, with regulations expected to take effect on October 1.

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