South Korea Expands Fraud Refund Eligibility to Virtual Assets Effective Oct 1

DAXA briefs non-won exchanges on compliance for Oct 1 law extending voice phishing refund rights to crypto losses, increasing operational burdens.

Woofun AI reports that the Digital Asset Exchange Association (DAXA) conducted a compliance briefing on July 28 for South Korean non-won exchanges regarding regulatory changes effective October 1. The revised legislation expands victim compensation eligibility for voice phishing scams to include virtual asset losses, previously limited to fiat currency. DAXA emphasized the necessity for exchanges to establish clear internal procedures for verifying fraud claims and coordinating with law enforcement. Non-won platforms, which facilitate only crypto-to-crypto trading, face distinct challenges in tracing and freezing stolen assets compared to fiat-based counterparts. The association aims to standardize response protocols across this segment to ensure adherence to the expanded consumer protection framework.