South Korea Targets VASP Accountability With New Proposal

• South Korea aims to improve crypto user protections with new reporting rules for service providers.  
• Suspicious crypto transactions rose 48.8%, prompting tighter regulations in South Korea.  
• South Korea’s virtual asset laws could allow corporate ownership by 2025, boosting regulation.

A South Korean lawmaker has proposed an amendment to better protect users of virtual assets in the country. Kim Hyun-jung, a member of the Democratic Party of Korea (DPK), therefore proposed a change to the Virtual Asset User Protection Act. It aims to increase transparency and accountability in the country’s growing virtual asset market.

This action comes as the crypto market grows in South Korea, with financial institutions moving into the digital asset space. The amendment seeks to improve communication between virtual asset service providers (VASPs) and the Financial Services Commission (FSC).

If passed, VASPs must immediately report any incidents that could disrupt their services, such as hacking or system failures.

Also, these providers must update their websites to keep users informed of any issues. This rule will keep customers updated during security breaches or…

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