The Digital Asset Exchange Alliance, known as DAXA, said Wednesday it held a briefing to help exchanges prepare for the amended Telecommunications Fraud Victim Compensation Act, which takes effect in October and extends the scope of fraud refunds to cover digital assets.
DAXA hosted the session Tuesday at Dreamplus Gangnam in Seoul, targeting non-won digital asset exchanges — operators that support only coin-to-coin trading without Korean won deposits or withdrawals.
The amended law, set to take effect in October, expands the existing telecom fraud compensation framework — previously limited to cash — to include digital assets. Under the new rules, digital asset exchanges will face fresh obligations, including freezing victim assets and processing refunds.
At the briefing, DAXA walked participants through the step-by-step procedures under the law: filing and receiving damage relief applications, freezing payments, submitting objections, extinguishing claims and refunding victim assets. The alliance also outlined what exchanges must have in place before the law takes effect and flagged key points to watch in day-to-day operations.
Exchange representatives in attendance shared updates on their own compliance preparations and discussed potential issues that could arise after the law takes effect, along with ways to address them.
"We hope this briefing helps operators fully understand their obligations and carry them out without disruption," said Kim Jae-jin, DAXA's standing vice chairman. "DAXA will continue to provide unwavering support so that the entire digital asset industry — won and non-won exchanges alike — can comply with regulations together and work to protect investors."
Meanwhile, the Financial Services Commission on July 15 proposed an amendment to the enforcement decree of the Special Act on Prevention of Damage from Telecommunications Financial Fraud and Refund of Damage. "This amendment to the enforcement decree is expected to lay the legal groundwork for effective refunds of victim assets in cases of telecommunications financial fraud involving digital assets," the FSC said.
kyoung@heraldcorp.com
