South Korea’s Financial Services Commission announced that the National Assembly has passed amendments to the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss, creating a legal basis to address vishing scams that steal or launder proceeds through virtual assets. The revisions bring virtual asset exchange service providers into the same prevention and loss-relief framework that applies to financial companies and extend victim remedies to virtual assets. Virtual asset exchange service providers will be required to verify the purpose of virtual asset transactions, monitor suspicious activity linked to vishing, freeze transactions when vishing is suspected, and support loss refunds. They will also join the AI-based Anti-phishing Sharing and Analysis Platform (ASAP), in operation since October 2025, for real-time information sharing with other organizations and authorities. The amended Act adds virtual assets to the types of property eligible for vishing-related loss relief and permits refunds to be paid in cash, after selling virtual assets, where the victim prefers. The FSC plans to revise subordinate statutes ahead of the amended Act taking effect in October 2026.
South Korea Financial Services Commission 2026-03-12
South Korea Financial Services Commission announces passage of anti-vishing law bringing virtual asset exchanges into monitoring, freezing and refund regime
South Korea's Financial Services Commission amended the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud, extending it to virtual asset exchange service providers. These providers must verify transaction purposes, monitor for vishing-related activities, and participate in the AI-based Anti-phishing Sharing and Analysis Platform for real-time information sharing. Effective October 2026, the amended Act allows cash refunds from the sale of virtual assets in vishing cases.