South Korea has enacted its first law to safeguard cryptocurrency investors, targeting unfair practices following incidents like the Terra-Luna collapse and the FTX exchange’s downfall. The law requires crypto exchanges to hold user deposits in financial institutions, pay interest, store a portion of assets in cold wallets, and secure insurance or reserves for potential losses. Exchanges must also report abnormal transactions to financial authorities. Additionally, the Korean Digital Asset Exchange Association (DAXA) has introduced guidelines to prevent widespread delistings of digital currencies. These measures aim to regulate the crypto industry while increasing transparency and security.
Source: decrypt.co
