The Block Crypto News18 minutes ago

Published on July 18, 2024 22:01 GMT+00:00edited on July 18, 2024 22:04 GMT+00:00

South Korea’s first crypto regulatory framework is now in full effect. Put on a fast track following the disastrous collapse of Terra-Luna and FTX in 2022, the new set of rules focuses on ensuring safety nets for cryptocurrency investors.

The new law — the Virtual Asset User Protection Act — was officially approved on July 18, 2024, and was given a one-year grace period to refine the regulation details.

The act imposes stricter requirements for digital asset exchanges. Service providers in South Korea are now legally obligated to safekeep at least 80% of user crypto deposits in cold storage separate from their own funds.

Exchanges must also delegate the custody of users’ cash deposits to a licensed local bank and maintain cryptocurrency reserves equal in amount and type to customer …