South Korea’s FSS starts system overhaul before crypto fraud reimbursements

South Korea’s Financial Supervisory Service has begun overhauling its system ahead of the inclusion of crypto-related voice phishing and other financial fraud losses in victim reimbursement, SBS Biz reported. According to financial industry sources cited by SBS Biz, the South Korean regulator on Aug. 6 posted a notice for a financial fraud victim reimbursement system improvement project. The move is aimed at revising the existing won-based reimbursement calculation framework in line with the planned inclusion of virtual asset losses in reimbursement coverage starting in October. The current system calculates reimbursement amounts mainly around losses denominated in won, but it will be changed to apply reimbursement ratios while also calculating the type and quantity of virtual assets involved. The won-converted value at the time a payment suspension is imposed will also be reflected.