South Korea to Include Cryptocurrency in Telecom Fraud Victim Compensation Starting October 1

According to ChainCatcher, South Korea's Financial Commission published a revised framework to include cryptocurrency-transferred telecom fraud funds in victim compensation, with the regulation taking effect on October 1. Under the new rules, if frozen assets are cryptocurrency, victims will receive compensation in the same asset type and quantity; if the defrauded and frozen assets differ in form, compensation will be in the asset form existing at the time of freezing. For mixed cash and crypto cases, regulators will value crypto assets using market prices at the freezing time to determine final compensation amounts.

The revised framework will be open for public comment until August 24. The Financial Commission stated that clarifying asset return forms and valuation timing will enable faster and fairer compensation in complex cases involving multiple victims' mixed funds.