DAXA Prepares South Korean Crypto Exchanges for Revised Refund Law

The Digital Asset Exchange Association (DAXA) in South Korea is preparing cryptocurrency exchanges for a revised law that expands refund eligibility for victims of voice phishing scams to include losses in virtual assets. The law, set to take effect on October 1, marks a significant expansion of consumer protection in the country's crypto market.

DAXA held a briefing on July 28 specifically for non-won exchanges that support only crypto-to-crypto trading. These exchanges face unique challenges under the new rules due to their lack of direct fiat currency handling, making it more complex to trace and return stolen assets.

The revised law signals South Korea's evolving approach to digital asset regulation. By treating virtual assets similarly to fiat currency in fraud refund cases, the government is strengthening investor protections without imposing a blanket ban on crypto trading.