South Korea's FSS upgrades anti-fraud system, and crypto assets are included in the scope of compensation for voice fraud

Comparatively, the Korea Financial Supervisory Service (FSS) has begun a three-month reconstruction project for the fraudulent refund system with a budget of about 119 million won. The upgrade is aimed at complying with the “Telecom Fraud Damage Compensation Law” revised on March 31 this year — the law will officially come into effect on October 1, officially including virtual assets in the categories of “damaged property” and “refundable property.”

The new system will support the calculation of compensation amounts based on the type and quantity of tokens, and use the value of the won when the funds are frozen as a reference base, and also has the ability to dismantle mixed fraudulent funds from multiple accounts. Major exchanges such as Upbit, Bithumb, Coinone, Korbit, and GOPAX will then have the same anti-fraud and victim relief obligations as banks, including verifying the purpose of the transaction, monitoring suspicious funds, and freezing suspected accounts.