South Korea's FSC to push for 'Digital Financial Security Act' to prevent crypto hacks

South Korea’s Financial Services Commission (FSC) is pushing to enact a new Digital Financial Security Act aimed at preventing hacks on virtual asset service providers, Digital Asset reported. The FSC disclosed the plan on Dec. 19 in a business report to the presidential office, citing the recent hack at the South Korean exchange Upbit, which resulted in the loss of 44.5 billion won ($32.2 million) in virtual assets, as a key example. The proposed legislation is expected to cover financial companies, electronic financial service providers, and virtual asset service providers. The FSC also stated it plans to strengthen its response system for new types of offenses, including cross-border crime and money laundering. Additionally, the commission intends to establish a comprehensive regulatory framework for digital assets that includes rules for stablecoins.