South Korea’s National Assembly has given the green light to the Virtual Asset User Protection Act, marking a significant stride towards establishing a legal structure for virtual assets. The legislation is set to come into force next year.
The act, an amalgamation of 19 proposals put forth by legislators, provides a clear definition of digital assets and outlines penalties for any unfair transactions. Service providers must now keep user assets separate, hold insurance, maintain a certain level of reserves in cold wallets, and keep a comprehensive record of all transactions.
