South Korea to Expand Voice Phishing Law to Cover Cryptocurrency Fraud

03/02/2023 05:51 • Metaverse Matters • 78 views

It is reported that the Financial Services Commission (FSC), the highest financial regulator in South Korea, said on Tuesday that South Korea will expand its existing voice phishing law to include telephone fraud related to cryptocurrency. FSC said that South Korea plans to amend the current law so that when the local authorities receive the report of voice phishing scam, they can freeze the cryptocurrency accounts of suspected offenders in the exchange. The Financial Supervisory Authority and the ruling People’s Power Party will propose amendments to the local voice phishing law in April, which will allow financial institutions and cryptocurrency service providers to share account information and suspend all suspicious accounts on different platforms. FSC said that the loss of voice phishing involving cryptocurrency reached about 20 billion won (US $15 million) last year, twice the 8.26 billion won reported in 2020. （Forkast）

South Korea’s financial regulator will crack down on voice phishing involving cryptocurrency

Analysis based on this information:

South Korea’s financial regulator, the Financial Services Commission (FSC), has announced that the country will be expanding its existing voice phishing law to encompass telephone fraud related to cryptocurrency. The move comes as part of South Korea’s efforts to tackle the increasing problem of cryptocurrency fraud and protect consumers from falling victim to scams.

Under the proposed legislation, when local authorities receive reports of voice phishing scams, they will be able to freeze the cryptocurrency accounts of suspected offenders on exchanges. Financial institutions and cryptocurrency service providers will also be allowed to share account information and suspend all suspicious accounts on different platforms.

The FSC said that the loss of voice phishing involving cryptocurrency amounted to around 20 billion won (US $15 million) last year, double the figure reported in 2020, highlighting the need for stronger measures to combat fraud in the sector.

The move follows a series of high-profile cryptocurrency scams in South Korea in recent years, including the theft of millions of dollars worth of cryptocurrencies from the Coinrail and Bithumb exchanges in 2018. The incident resulted in the FSC introducing new regulations requiring cryptocurrency exchanges to enhance their security measures and report any suspicious activity to the authorities.

The decision to expand the voice phishing law to cover cryptocurrency fraud is a significant step towards improving consumer protection and ensuring the long-term viability of the cryptocurrency market in South Korea. However, some critics have argued that the move could stifle innovation and investment in the sector by creating a more restrictive regulatory environment.

In conclusion, South Korea’s decision to strengthen its voice phishing law to cover cryptocurrency fraud highlights the increasing need for stricter regulation and consumer protection in the rapidly evolving cryptocurrency market. While the move may be seen as restricting innovation and investment, it is ultimately a positive step towards creating a safer and more transparent environment for all stakeholders in the sector.

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