Coin

<ul class="wp-block-list news-points"><li>South Korea mandates insurance for defunct crypto exchanges to protect user assets.&nbsp;&nbsp;</li><li>Virtual Asset User Protection Act enforces strict measures on crypto exchanges’ operations.&nbsp;&nbsp;</li><li>Non-compliance with South Korea’s crypto rules can result in fines or service suspension.</li></ul>South Korea’s Financial Supervisory Service (FSS) now requires defunct cryptocurrency exchanges to obtain insurance to safeguard user assets. This measure comes as part of a wider initiative to bolster investor protections following the recent implementation of the Virtual Asset User Protection Act, South Korea’s first comprehensive regulatory framework for the crypto industry.The new insurance mandate aims to protect assets held by bankrupt exchanges, mitigating risks associated with potential <a href="https://coinedition.com/south-korea-cracks-down-on-crypto-crime-new-unit-to-tackle-lazarus-group-threat/" rel="noopener noreferrer nofollow">hacking incidents</a>. Several exchanges that have shut down, including GDAC and Hanbitco, have already secured insurance coverage.<a href="https://coinedition.com/huobi-crypto-exchange-acquired-by-about-capital-management/" rel="noopener noreferrer nofollow">Huobi Korea</a>, another major exchange, is reportedly considering taking similar steps to meet this regulatory demand. This insurance mandate directly enforces the Virtual Asset User Protection Act, ensuring user funds remain protected even after an exchange closes.The Virt…The post <a href="https://coinedition.com/south-korea-mandates-insurance-for-closed-crypto-exchanges/" rel="noopener noreferrer nofollow">South Korea Mandates Insurance for Closed Crypto Exchanges</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

South Korea Mandates Insurance for Closed Crypto Exchanges

Coin Edition

Other articles published on Aug 13, 2024

Future of Interoperability with MoonTON

Bad News for Binance US from the Court! US Court of Appeals Overturns Decision on This Altcoin!

Is Bitcoin Price Breakout In Sight As It Returns to Previous Cycles?

Weekly Article Recap: 7/29-8/02

Do Kwon to be Extradited to South Korea: Montenegro Court Upholds Decision

Weekly Article Recap: 8/05-8/09

Join our free newsletter for daily crypto updates!