South Korea Strengthens Cryptocurrency Regulation

🔴 Colin Wu, a cryptocurrency industry researcher, reported recent developments from South Korea. The country’s authorities have conducted an investigation into Virtual Asset Service Providers (VASPs) that close or suspend operations without valid reasons. The checks revealed that 7 out of 10 VASPs could not return users’ assets.

🔵 The South Korean authorities have vowed to take strict actions against dishonest institutions. The Financial Services Commission (FSC) plans to establish a new “Virtual Asset Department” and review policies restricting government employees from owning digital assets. Additionally, the Ministry of Justice has announced an amendment to the “Prosecution Investigation Act,” which will include crimes related to virtual assets.