South Korea Officially Enacts the First Crypto Law

Bittime - South Korea officially implemented its first cryptocurrency regulatory framework, known as the Virtual Asset User Protection Act. This regulation aims to protect investors with a series of strict rules for digital asset service providers.

South Korea Crypto Law

This new regulation imposes stricter requirements for digital asset exchanges in South Korea. One of the main rules is the obligation for exchanges to keep a minimum of 80% of user deposits in cold wallets. This cold wallet aims to isolate user funds from the exchange's operational funds, thereby increasing the security of these funds.

In addition, crypto exchanges are also required to entrust users' cash deposits to licensed local banks for safe storage. Exchanges must also maintain crypto reserves in the same amount and type as customer deposits. This means that each exchange must have sufficient reserves to accommodate user withdrawals at any time, thereby reducing liquidity risks.

As an additional measure, crypto services in South Korea are now required to have adequate insurance or set up reserve funds to deal with hacker attacks or liquidity crises. This is done to provide an extra layer of protection for investors in emergency situations.

Real-Time Surveillance System 

The law also requires exchanges to install real-time monitoring systems to report suspicious trading activity that could be potentially illegal. This system will help detect and prevent acts of fraud or market manipulation early on.

Companies that fail to comply with these new regulations could face sanctions from South Korea's Financial Services Commission (FSC) or even termination of their services. The FSC, as the highest financial regulator in South Korea, has also launched a 24-hour surveillance network with local exchanges to monitor suspicious activity in the crypto market.

South Korea and Cryptocurrencies

South Korea is known as one of the countries with the most crypto users. In the first quarter of 2024, the Korean won will become the most used fiat currency for crypto trading compared to the US dollar. This shows how important South Korea's role is in the global cryptocurrency ecosystem.

With the implementation of this new regulatory framework, the crypto market in South Korea is expected to become safer and more attractive for investors, both local and international. This strict regulation can also provide an example for other countries on how to manage and regulate the rapidly growing crypto market.

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor graphic movement price Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.