South Korea promotes new anti-fraud regulations in telecommunications finance, encrypted assets will be included in the scope of compensation for injured funds

The Financial Commission of South Korea announced a draft revision to the "Regulations on the Implementation of the Special Law on the Prevention of Telecommunication Financial Fraud and the Return of Victim Funds", which plans to include telephone fraud funds transferred to encrypted assets in the scope of victim compensation, and clarify the return and valuation standards of encrypted assets. Relevant regulations are expected to officially take effect on October 1. According to the new regulations, if the frozen assets are cryptocurrencies, the victims will in principle be returned according to the type and quantity of the assets; if the deceived assets are different from the frozen assets, the compensation will be made in the form of assets that actually existed when the account was frozen. In the case of mixing cash with crypto assets, regulatory authorities will value the crypto assets based on the market price at the time of freezing to determine the final compensation amount. The Financial Commission of Korea stated that clarifying the form of asset return and valuation timing will help achieve faster and fairer compensation in complex cases where multiple victims 'funds are mixed. It is reported that the public solicitation of opinions on the revised draft will last until August 24.