South Korea’s digital asset exchanges are moving to align with a revised law set to take effect Oct. 1 that expands refund eligibility for victims of voice phishing scams to include losses in virtual assets. The Digital Asset Exchange Association, or DAXA, held a practical briefing on July 28 at Dreamplus Gangnam in Seoul’s Gangnam district, specifically for non-won exchanges that support only crypto-to-crypto trading.
Scope of the legal revision
The core change under the revised law extends refund protections previously limited to fiat currency losses. Starting in October, victims of telecom fraud — commonly known as voice phishing — can claim compensation for virtual asset losses as well. This marks a significant expansion of consumer protection in South Korea’s crypto market, where fraud cases involving digital assets have risen sharply in recent years.
DAXA’s briefing covered institutional readiness and practical compliance steps for affected exchanges. The association emphasized the need for clear internal procedures to handle refund claims, verify fraud cases, and coordinate with law enforcement and financial authorities.
Why non-won exchanges are a focus
Non-won exchanges, which do not handle fiat currency directly, face unique challenges under the new rules. Unlike major won-based platforms, these exchanges operate primarily in crypto-to-crypto pairs, making it more complex to trace, freeze, or return stolen assets. DAXA’s guidance aimed to standardize response protocols across this segment of the market.
Impact on the broader crypto ecosystem
The legal change signals South Korea’s evolving approach to digital asset regulation. By treating virtual assets similarly to fiat currency in fraud refund cases, the government is strengthening investor protections without imposing a blanket ban on crypto trading. This could set a precedent for other jurisdictions grappling with how to handle crypto-related financial crime.
Industry observers note that the move may also increase operational costs for smaller exchanges, which must now implement more robust fraud detection and claims processing systems. However, the long-term effect is likely to boost consumer confidence in the market.
Conclusion
With less than three months until the law takes effect, DAXA’s briefing provides a roadmap for compliance. The October rollout will test how well South Korea’s crypto exchanges — especially those operating without fiat on-ramps — can adapt to expanded refund obligations. The outcome may influence future regulatory frameworks in Asia and beyond.
FAQs
Q1: What does the revised South Korean law change for crypto investors?The law expands refund eligibility for voice phishing victims to include losses in virtual assets, not just fiat currency. This means victims can claim compensation for stolen crypto through the same legal channels used for cash losses.
Q2: Why did DAXA hold a separate briefing for non-won exchanges?Non-won exchanges, which only support crypto-to-crypto trading, face more complex compliance challenges because they do not handle fiat currency directly. DAXA provided tailored guidance on how these platforms can trace and refund stolen virtual assets.
Q3: When does the new refund law take effect?The revised law is scheduled to take effect on Oct. 1, 2025. Exchanges are expected to have compliance measures in place by that date.
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