South Korea’s FSS Upgrades Reimbursement System to Cover Crypto Losses

The South Korean Financial Supervisory Service (FSS) has initiated a system overhaul to prepare for the inclusion of cryptocurrency-related losses in its financial fraud victim reimbursement program.

This move marks a significant step toward broadening the scope of protection for victims of voice phishing and other financial scams involving virtual assets, according to a report by SBS Biz.

The current reimbursement calculation framework focuses on losses denominated in South Korean won. However, starting in October, the system will be expanded to cover virtual asset losses, which requires substantial technical adjustments to the FSS’s existing infrastructure.