The Digital Asset Exchange Alliance (DAXA) held a briefing on May 28 at Dream Plus Gangnam in Seoul for non-KRW digital asset exchanges regarding the Telecommunications Fraud Damage Refund Act. The session aimed to prepare exchanges for the law's implementation on October 1. The revised law expands damage refund coverage from money to virtual assets, imposing new compliance obligations on exchanges including damage relief, payment suspension, and refunds.
DAXA Hosts Briefing for Non-KRW Exchanges on May 28
DAXA announced on the 29th that it held an institutional and practical briefing for non-KRW digital asset exchanges in preparation for the Telecommunications Fraud Damage Refund Act taking effect on October 1. Non-KRW digital asset exchanges refer to platforms that support only coin-to-coin trading without KRW deposits or withdrawals.
The briefing on May 28 at Dream Plus Gangnam in Seoul was organized to support smooth legal compliance across all digital asset exchanges regardless of KRW deposit/withdrawal availability. The session covered step-by-step procedures from damage relief application and acceptance to payment suspension, objection filing, claim extinguishment, and victim asset refunds. DAXA explained key compliance obligations for operators and provided guidance on pre-implementation preparations and practical considerations.
Participating exchanges shared their preparation status and discussed anticipated key issues and response measures during the implementation process.
Law Expands Refund Coverage to Virtual Assets
The amended law expands the scope of damage refunds, previously limited to money, to include virtual assets. The legislation imposes new compliance obligations on virtual asset exchanges including damage relief, payment suspension, and refunds.
The law requires exchanges to establish procedures covering damage relief applications, payment suspension protocols, objection handling, claim resolution, and victim asset refunds. Exchanges must prepare systems and internal processes to fulfill these obligations before the October 1 implementation date.
DAXA Commits to Supporting Industry-Wide Compliance
Kim Jae-jin, DAXA Standing Vice Chairman, stated, "Through this briefing, we hope operators can fully understand their related obligations and implement them without disruption. We will continue to provide support so that the entire virtual asset industry, regardless of whether they are KRW or non-KRW exchanges, can jointly comply with regulations and work toward investor protection."
DAXA emphasized its commitment to supporting both KRW and non-KRW exchanges in meeting regulatory requirements and protecting investors.
FAQ
What did DAXA do on May 28?
DAXA held an institutional and practical briefing on May 28 at Dream Plus Gangnam in Seoul for non-KRW digital asset exchanges regarding the Telecommunications Fraud Damage Refund Act, which takes effect on October 1.
What are non-KRW digital asset exchanges?
Non-KRW digital asset exchanges are platforms that support only coin-to-coin trading without offering KRW (Korean won) deposits or withdrawals.
What new obligations does the law impose on exchanges?
The amended Telecommunications Fraud Damage Refund Act imposes new compliance obligations on virtual asset exchanges including damage relief procedures, payment suspension protocols, objection handling, and victim asset refunds.
