South Korea regulator wants banks to custody customers’ VASP deposits

South Korea’s Financial Services Commission (FSC) proposed new rules on Monday to protect crypto users.

The proposed rules would fall under its Protection of Virtual Asset Users Act, which is set to take place on July 19, 2024.

The Act will cover “electronic tokens with economic value which can be traded or transferred electronically,” but put “electronic bonds, mobile gift certificates, deposit tokens linked to CBDC and non-fungible tokens (NFTs) to the list of excluded tokens,” the FSC said.

NFTs have an exception, however, with the FSC clarifying that large scale issuances, as well as tokens used as a payment method for a good or service, could see “digital tokens”…

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