South Korea details crypto refund process for phishing victims

South Korea’s Financial Services Commission (FSC) has specified the procedure for refunding virtual assets to victims of voice phishing and other financial scams, SBS Biz reported. According to a proposed amendment to the enforcement decree of the Special Act on the Prevention of Telecommunications-based Financial Fraud and Damage Refund, if the recovered asset is monetary, it will be refunded by its currency value. If it is a virtual asset, it will be returned by its type and quantity. In cases where the asset stolen from a victim differs from the asset remaining in a frozen fraudulent account, the refund will be made in the form of the asset present in the account at the time of the freeze. The FSC also plans to establish requirements for designating a dedicated institution to support the sale of virtual assets eligible for refunds. The amended decree is scheduled to take effect on Oct. 1, coinciding with the law's implementation date.