South Korean Lawmaker Proposes Changes to the Virtual Asset User Protection Act

On September 26, Park Sang-hyuk, a lawmaker from the Democratic Party of Korea (DPK), introduced a proposal to amend the Virtual Asset User Protection Act. The proposal aims to protect cryptocurrencies held by investors in the event that a trading platform goes bankrupt. It would prevent crypto assets from being used to settle debts or being confiscated, and ensure that they are returned to users as a priority. The current legal regulations have been criticized for potentially preventing users from recovering crypto assets held in the event of a trading platform's bankruptcy.