• The brand new bundle of legal guidelines contains adjustments to a number of current legal guidelines geared toward offering authorized help to victims of economic fraud.
• Up to date guidelines for phone and on-line banking fraud will ease the method of sharing data between banks.
• This modification to the invoice exhibits that South Korea is creating the mandatory framework for regulated tokenized property.

South Korea’s Nationwide Meeting has permitted 11 extensively supported payments targeted on public welfare and assist. Their objectives are to strengthen catastrophe aid, strengthen fiscal protections and create clearer guidelines for rising industries.

The brand new bundle of legal guidelines contains adjustments to a number of current legal guidelines geared toward offering authorized help to victims, strengthening safety methods, and selling monetary and market innovation. One of many important adjustments was to the nation’s core catastrophe legislation (the Framework Act on Catastrophe and Security Administration), which made supporting victims of main accidents and bushfires an official long-term mandate for the federal government.

The adjustments will permit the federal government to ascertain a Central Catastrophe Sufferer Help Heart to offer organized assist and compensation to households affected by main tragedies. These embody occasions such because the December 29, 2024 Jeju Air crash (the nation’s worst air catastrophe in many years) and the huge forest fires within the southeast in 2025.

What the brand new legislation means for cryptocurrencies

One legislation amends the Phone and On-line Banking Fraud Rules (Particular Regulation on Prevention of Losses and Refund of Losses from Telecommunications Monetary Fraud) to make it simpler for banks, phone corporations, and police to share data.

Whereas this doesn’t straight title cryptocurrencies, it’s extremely related to the cryptocurrency house, particularly since cryptocurrency scams and phishing are some of the widespread methods persons are focused in Asia (and world wide). Fraudsters typically use faux pockets hyperlinks, spoof exchanges, and DeFi platforms to steal cash.

Associated: South Korean crypto trade opposes proposed 20% possession cap

As well as, better collaboration between banks, telcos, and authorities will allow them to trace and cease suspicious funds, together with transfers of crypto wallets and addresses. Though this legislation isn’t particularly about cryptocurrencies, it strengthens methods to fight on-line and fintech fraud and likewise covers cryptocurrency fraud. This could possibly be step one towards enacting a legislation particularly for cryptocurrency crimes sooner or later.

The brand new legislation additionally contains amendments to the Monetary Funding Companies and Capital Markets Act and the Act on Digital Registration of Shares and Debt Securities, that are vital for digital markets.

The amendments are anticipated to ascertain a authorized foundation for issuing tokenized securities inside a regulated framework. South Korea can also be actively engaged on constructing a safety token providing (STO) framework that goals to introduce digital property into the mainstream monetary system whereas sustaining investor safety.

Though these adjustments don’t legalize the wholesale sale of cryptocurrencies, they do sign that South Korea is creating the mandatory framework for regulated tokenized property by combining conventional investments with blockchain-based tokens.

Associated: South Korea reopens doorways to company cryptocurrencies for the primary time in 9 years