The Financial Services Commission (FSC) in South Korea has announced new regulations aimed at bolstering investor protection and promoting transparency in the cryptocurrency market. Under the revised regulations, investors in crypto assets will be entitled to receive interest payments on their deposits made through exchanges. This move is intended to ensure the adequate protection of user funds and allow investors to earn returns on their capital.
To enhance security and mitigate risks, crypto asset operators will be required to store over 80% of the economic value of users’ virtual assets in cold wallets. Additionally, they must obtain insurance coverage or establish mutual aid programs to protect against potential hacking incidents. Minimum standards have been set for exchanges and wallet/custodian services to ensure compliance.
The new regulations also address concerns regarding insider trading. Important information shared by digital asset businesses on exchanges will be considered public knowledge after a six-hour disclosure period. Blocking users’ deposits and withdrawals will be prohibited, except in cases of computer failures, hacking incidents, or when requested by courts, investigative agencies, or financial authorities.
Crypto exchanges will be required to monitor and report any abnormal transactions, promptly notifying financial authorities of any suspected unfair trade practices. This measure aims to prevent market manipulation and ensure a fair trading environment for investors. Digital asset deposit and management businesses that have faced controversy for suspending deposits and withdrawals without notice will be prohibited from engaging in such practices.
The FSC’s comprehensive regulatory framework seeks to establish a robust and secure environment for digital asset investors in South Korea. By introducing interest payments on deposits and implementing enhanced oversight, the FSC aims to foster trust, protect user funds, and promote responsible growth in the cryptocurrency market.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | None |
| Companies | Delio, Haru Invest, Financial Services Commission (FSC) |
| Currencies | None |
| Securities | None |
