South Korea Tightens Prepaid Service Provider Crypto Investment Rules

The Fair Trade Commission (FTC) of South Korea has announced a revised consumer protection guideline for prepaid service providers, which includes a 20-day advance notice period ending on September 14. The updated guideline requires companies to conduct thorough reviews before making high-risk investments, including exposure to virtual assets and derivatives.

The proposed changes aim to prevent scenarios where consumer prepayments are jeopardized by speculative investments. Companies managing customer prepayments must balance stability, liquidity, and profitability when handling those funds. Any investment that carries a significant risk of principal loss would need prior internal review and approval.

Large companies holding at least 100 billion won (approximately $75 million) in customer prepayments would be required to establish and operate a prepayment management review committee to ensure fund management remains stable and decision-making processes are transparent.