South Korea's First Crypto Law Enforces Strict Investor Protection Measures
South Korea's first crypto regulatory framework is now in full effect, focusing on investor protection. This law, fast-tracked after the Terra-Luna and FTX collapses in 2022, is known as the Virtual Asset User Protection Act and was officially approved on July 18, 2024. It includes stringent requirements for
crypto exchanges, mandating them to keep at least 80% of user deposits in cold storage, separate from their own funds. Exchanges must also use licensed local banks for cash deposits and maintain reserves matching customer deposits. Additionally, they need to secure insurance or a reserve fund for potential hacks or liquidity issues.
The act also requires exchanges to implement real-time monitoring systems to report suspicious trading activities. Non-compliance could result in penalties or service suspension by the Financial Services Commission (FSC), South Korea's top financial regulator. The FSC has launched a 24-hour surveillance network with local exchanges to monitor for suspicious activity.
Kim Hyoung-joong, president of the Korea Fintech Society, noted that while the new law establishes a solid regulatory framework, it needs to extend beyond its current scope. He emphasized the need for regulations on virtual asset issuance and measures to promote industry growth. Lawmakers are also discussing further regulations, including those on token issuance and institutional crypto investments.
South Korea hosts one of the world's largest
cryptocurrency
markets, with the Korean won surpassing the U.S. dollar as the most-used fiat currency for
crypto trading in early 2024.
Futures Market Updates
In the past 24 hours, BTC futures have seen a slight increase in open interest (+0.91%), while ETH futures' open interest rose minimally by 0.08%. BTC trading volume decreased significantly by 18.46%, compared to a smaller decline of 8.51% in ETH trading volume. Both BTC and ETH futures experienced more long liquidations with similar long/short ratios, and identical
funding rates.
BTC Futures Updates
Total BTC Open Interest: $34.04B (+0.91%)
BTC Volume (24H): $47.72B (-18.46%)
BTC Liquidations (24H): $26.17M (Long)/$10.24M (Short)
Long/Short Ratio: 48.92%/51.08%
Funding Rate: 0.0070%
Ether Futures Updates
Total ETH Open Interest: $14.26B (+0.08%)
ETH Volume (24H): $21.87B (-8.51%)
ETH Liquidations (24H): $21.70M (Long)/$9.51M (Short)
Long/Short Ratio: 48.86%/51.14%
Funding Rate: 0.0070%
Top 3 OI Surges
GAL: $8.31M (+159.23%)
MAPO: $1.56M (+128.67%)
