The Financial Supervisory Service (FSS) of South Korea has started a three-month project to rebuild its fraud refund system, allocating a budget of around 119 million won. This initiative supports the revised Telecommunications Fraud Damage Compensation Act, which goes into effect on October 1 and formally includes virtual assets in the categories of "damaged property" and "refundable property." The upgraded system will be able to compute compensation based on the type and quantity of tokens, using the Korean won value at the moment funds were frozen as the reference point. It also has the functionality to unravel mixed fraudulent funds that involve multiple accounts. Consequently, major cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, and GOPAX—will be subject to the same anti-fraud and victim relief responsibilities as banks, which include checking transaction purposes, watching for suspicious funds, and freezing accounts suspected of fraud. The project runs for three months, aligning with the act's enforcement timeline.
South Korea's Financial Supervisory Service (FSS) has kicked off a three-month project to rebuild its fraud refund system, setting aside about 119 million won for the job. The update is meant to match the revised Telecommunications Fraud Damage Compensation Act, which starts on October 1 and officially treats virtual assets as "damaged property" and "refundable property."
The revamped system will work out compensation by token type and quantity, using the Korean won value from the moment the funds were frozen as its benchmark. It will also split up mixed fraudulent funds spread across multiple accounts. And major exchanges such as Upbit, Bithumb, Coinone, Korbit, and GOPAX will have to take on the same anti-fraud and victim-relief duties as banks. That means checking transaction purposes, watching suspicious funds, and freezing suspected accounts.
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