South Korea Preps Crypto Exchanges for Expanded Refund Law

The Digital Asset Exchange Association (DAXA) in South Korea is preparing crypto exchanges for the implementation of 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, 2025, will treat virtual assets similarly to fiat currency in fraud refund cases, strengthening investor protections without imposing a blanket ban on crypto trading.

DAXA held a briefing for non-won exchanges, which operate primarily in crypto-to-crypto pairs and face unique challenges under the new rules. The association emphasized the need for clear internal procedures to handle refund claims, verify fraud cases, and coordinate with law enforcement and financial authorities.