South Korea Proposes Rules for Returning Frozen Crypto Assets in Fraud Cases

South Korea's Financial Services Commission has published a draft revision to special enforcement rules for a law on preventing telecom financial fraud and returning victims' funds. The draft would include funds transferred into crypto assets through phone scams in victim compensation and set standards for returning and valuing crypto assets. According to Odaily, the revised rules are expected to take effect on October 1. Under the new framework, if frozen assets are cryptocurrency, victims would generally receive repayment based on the asset type and amount. If the fraudulent assets differ from the frozen assets in form, compensation would be made in the form of assets that existed when the account was frozen. For cases involving a mix of cash and crypto assets, regulators would value the crypto at the market price at the time of freezing to determine the final compensation amount. The Financial Services Commission said specifying the form of returned assets and the valuation point would help speed up and make compensation fairer in complex cases involving funds from multiple victims. The draft revision will be open for public comment until August 24.