Korea ' s New Code for Telecommunication Financial Fraud: Encrypted assets will be included in the payment of aggrieved funds

On 16 July, the Korea Finance Commission published a revised draft of the Regulations for the Implementation of the Special Act on the Prevention of Telecommunication Financial Fraud and the Return of Suffering Funds, which envisages the inclusion of telephone fraud funds transferred to encrypted assets in the scope of compensation for damages and the clarification of the criteria for the return and valuation of encrypted assets, which is expected to enter into force on 1 October. Under the new regulations, if the assets are frozen in encrypted currency, the victims will in principle be returned according to the type and quantity of assets, and if the assets are defrauded in a different form from the assets frozen, they will be paid in the form of assets actually in existence at the time the accounts are frozen. Where cash is mixed with encrypted assets, the regulator will value the encrypted assets on the basis of market prices at the time of the freeze to determine the final amount to be paid. The Korea Finance Commission indicated that clarity on the form of return of assets and the time of valuation would help to achieve faster and fair payment of compensation in complex cases where funds of multiple victims were mixed, and it was understood that the revised draft would continue until 24 August。