South Korea Passes Law Requiring Crypto Exchanges to Hold 100% Reserve Backing



South Korea's National Assembly passed landmark legislation on August 28 requiring all cryptocurrency exchanges operating in the country to maintain 100% reserve backing of customer deposits . The new law, effective January 2027, mandates that exchanges hold customer assets in segregated accounts with the same value as user deposits . This regulation follows similar requirements in Japan and the United States, representing a global trend toward stronger consumer protection in the crypto industry . Exchanges that fail to comply face potential license revocation and fines .
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