ChainCatcher news, the Financial Services Commission of Korea requires virtual asset exchanges that have ceased operations to sign "virtual asset business insurance." Some closed exchanges, such as Gdac and Hanbitco, have already purchased insurance, while others, like Huobi Korea, are considering buying insurance.The insurance for virtual asset service providers is intended to help businesses cope with risks such as hacking attacks and system failures. Last month, with the implementation of the "Virtual Asset User Protection Act," purchasing insurance became a mandatory requirement.According to the "User Protection Act," continuing operations without accumulating reserves or without joining an insurance policy with a compensation limit of at least 5 billion won will result in fines and the inability to continue operations.

According to ChainCatcher news and TokenPost reports, South Korea is set to implement a virtual asset user protection law, introducing a new strict regulatory framework for the digital asset market to enhance market transparency and security. The law specifically focuses on the regulation of NFTs, requiring companies that issue NFTs considered virtual assets to comply with stringent assessment and reporting standards.The Financial Services Commission has released detailed guidelines that clarify the classification criteria for NFTs as virtual assets, including parameters such as issuance scale, divisibility, and trading utility. Operators must ensure that their business activities comply with regulatory requirements to avoid criminal penalties. The new regulations will take effect on July 19, marking the beginning of South Korea's era of regulation for digital assets like NFTs.

ChainCatcher news, according to the Economic Pioneer, the South Korean State Council today passed the enforcement order of the "Virtual Asset User Protection Act," which will take effect on July 19. The decree stipulates that virtual asset service providers (VASP) must secure user deposits through banks.In addition, VASP has the right to suspend users' cash deposits as well as deposits and withdrawals of virtual assets based on reasonable grounds specified in the decree.