South Korea's FSS upgrades anti-fraud system, including encrypted assets in the scope of compensation for voice scams

The Financial Supervisory Service (FSS) of South Korea has launched a three-month project to rebuild the fraud refund system with a budget of approximately 119 million won. This upgrade aims to align with the revised Telecommunications Fraud Damage Compensation Act, which will officially take effect on October 1, and formally includes virtual assets in the categories of "damaged property" and "refundable property."

The new system will support the calculation of compensation amounts based on token types and quantities, using the value of the won at the time the funds were frozen as a reference benchmark, and will also have the capability to dismantle mixed fraud funds across multiple accounts. Major exchanges such as Upbit, Bithumb, Coinone, Korbit, and GOPAX will be required to undertake anti-fraud and victim relief obligations equivalent to those of banks, including verifying transaction purposes, monitoring suspicious funds, and freezing suspected accounts.