South Korea Implements New Crypto Regulations
The Financial Services Commission (FSC) of South Korea has announced that by July 2024, investors in digital assets must receive interest on funds held on exchanges.
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The Financial Services Commission (FSC) of South Korea has announced that by July 2024, investors in digital assets must receive interest on funds held on exchanges.
While NFTs and CBDCs are excluded from the law, certain non-fungible tokens used as payment methods and issued extensively might be treated as virtual assets, subject to interest accrual.
The new directives also require exchanges to separate user deposits from their own assets. These deposits should be entrusted to a bank and 80% of the coins must be stored in cold wallets.
Additionally, providers of virtual asset services must maintain insurance or reserves for security breaches. The guidelines also state that freezing deposits or withdrawing funds is prohibited unless required by law.
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