South Korea Proposes 30-Day Crypto Account Freeze for Illegal Transfers

Korean lawmakers propose amending financial laws to allow authorities to freeze virtual asset accounts for 30 days if linked to illicit transfers, with non-compliance penalties reaching 100 million won.

Woofun AI reports that 15 members of South Korea's People Power Party, including Kim Sang-hoon, submitted an amendment to the Specific Financial Information Act on July 28. The proposal empowers financial authorities to request payment suspensions for virtual asset accounts identified as unique identification numbers by exchanges. If the Financial Intelligence Analysis Institute deems an account suspicious, it can mandate a 30-day freeze, extendable once, with non-compliant entities facing fines up to 100 million won. The legislation is scheduled to take effect six months after announcement.