South Korean crypto exchanges can now promptly suspend transactions under a new law aimed at combating hacking, money laundering, and fraud.
Amendments to the Virtual Asset User Protection Act
A recent amendment to South Korea’s Virtual Asset User Protection Act allows crypto exchanges to immediately suspend transactions for legitimate reasons. This provision was introduced by regulators to confront hacking, money laundering, and fraud. Exchanges can now act without prior notice to users but must notify them afterward.
Impact on Upbit Cryptocurrency Platform
South Korea’s largest cryptocurrency platform, Upbit, faces increased scrutiny over allegations of breaching Know-Your-Customer regulations. The new amendments place additional responsibilities on Upbit to ensure security and compliance with legal standards.
South Korea's Industry Expansion Plan
South Korea’s first crypto user protection act took effect on July 19, 2024. The Virtual Asset User Protection Act aligns with the country's expansion plans, ensuring customer security. In recent months, South Korea has implemented a series of rules to reduce increasing threats and eliminate unfair trading practices in the crypto industry.
South Korea’s legislative updates strengthen user protection on crypto exchanges, indicating the country's ongoing efforts to regulate the cryptocurrency industry.
