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

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）

Interpretation of this information:

The Financial Services Commission (FSC) announced that South Korea will extend its current voice phishing law to include telephone fraud related to cryptocurrency. This is a significant step in the country’s efforts to regulate the emerging industry and protect its citizens from scams and fraudulent activities. Essentially, the proposed amendments will allow local authorities to freeze the cryptocurrency accounts of suspected offenders in the exchange when they receive reports of voice phishing scams.

The move comes as the country experienced a surge in cryptocurrency-related scams, particularly voice phishing, which reached about 20 billion won last year – this figure is twice the 8.26 billion won reported in 2020, demonstrating the alarming increase in cryptocurrency scams. With this new initiative, financial institutions and cryptocurrency service providers will be able to share account information and suspend suspicious accounts on various platforms, creating a more collaborative and secure environment.

It is worth noting that voice phishing scams are increasingly sophisticated, and fraudsters use various tactics to gain access to people’s personal information and cryptocurrency accounts, including pretending to be government officials, police officers, or reputable financial institutions. This underscores the need for stronger regulations and better security measures in the cryptocurrency space, especially in countries where fraud and scams are prevalent.

While some may argue that stricter regulations may stifle innovation, the reality is that the industry needs to be regulated to protect consumers and promote long-term growth. Indeed, South Korea’s move to extend its current voice phishing law to cryptocurrency-related scams is a positive step towards creating a safer and more secure environment for cryptocurrency traders and investors.

In summary, South Korea’s plan to amend its current law to include telephone fraud related to cryptocurrency is a significant development in the country’s efforts to regulate the emerging industry and protect its citizens from scams and fraudulent activities. The move will allow local authorities to freeze cryptocurrency accounts of suspected offenders, while financial institutions and cryptocurrency service providers can share account information and suspend suspicious accounts on different platforms. Such measures will help create a more collaborative and secure environment, boosting consumer confidence and promoting long-term growth for the industry.