South Korea Adds Digital Assets to Voice Phishing Relief Scope

South Korea's Financial Services Commission announced on the 15th a legislative notice to amend the enforcement decree of the Special Act on Prevention of Telecommunications Financial Fraud and Refund of Damages, expanding relief coverage to include digital assets. The amendment broadens the scope of regulated financial companies to include digital asset exchanges and extends asset definitions beyond cash to encompass digital assets. This regulatory expansion aims to strengthen victim protection in telecommunications financial fraud cases involving virtual asset transactions.

Amendment Expands Financial Company and Asset Definitions

The amendment includes digital asset exchanges within the scope of regulated financial companies subject to the special law. The definition of assets, previously limited to cash only, now encompasses digital assets. When distributing refund assets, the amendment expands payment methods from account deposits only to include digital asset transfers. For cases where refund assets are digital assets, the refund is denominated in type and quantity units. When the damage amount involves digital assets, the total is calculated based on the market price at the time of payment suspension.

Comment Period Runs Through August 24 With October 1 Implementation

The Financial Services Commission conducts a public comment period on this amendment through August 24. Following the comment period, the finalized amendment is scheduled for implementation on October 1.

FAQ

What did South Korea's Financial Services Commission announce on the 15th?

The Financial Services Commission announced a legislative notice to amend the enforcement decree of the Special Act on Prevention of Telecommunications Financial Fraud and Refund of Damages, expanding relief coverage to include digital assets and digital asset exchanges.

When does the amended regulation take effect?

The amendment is scheduled for implementation on October 1, following a public comment period that runs through August 24.