Gate News message, April 21 — South Korea’s ruling Democratic Party member Lee Heon-seung introduced an amendment to the Virtual Asset User Protection Act on April 20 to prevent cryptocurrency exchange mishaps, following a major incident in February when a leading South Korean exchange mistakenly transferred 620,000 BTC to users as compensation.
The proposed amendment mandates that cryptocurrency exchanges periodically verify the consistency between customer digital assets held in custody and those actually held on-chain, identifying both the types and total quantities of assets. Additionally, exchanges must establish risk management frameworks to identify, assess, monitor, and control trading-related risks in a timely manner.
The legislation also requires exchanges to maintain customer digital assets in segregated wallets. The opposition Democratic Party similarly introduced a comparable amendment on March 4, also emphasizing separate custody arrangements for user assets.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Coin Center report: Publishing software code is free speech and should be protected by the First Amendment
The cryptocurrency research and advocacy organization Coin Center published a report on April 20, 2026 (Monday), arguing that writing and publishing cryptocurrency software code is speech protected by the First Amendment to the U.S. Constitution, and proposing a legal framework to distinguish between protected software release conduct and developer conduct that should be regulated.
MarketWhisper27m ago
Curve Founder Calls for DeFi Safety Standards Amid Hacking Surge
Michael Egorov, founder of Curve Finance, highlighted the DeFi industry's vulnerabilities after a significant hack. He stressed the need for preventive measures, collaborative safety standards, and accountability to restore trust and ensure secure adoption in the sector.
CryptoFrontier29m ago
South Korea's FSC Clarifies VASP Confirmation Requirements for Bankrupt Entities No Longer Trading Digital Assets
South Korea's Financial Services Commission clarified that financial institutions need not confirm VASP status for bankrupt corporate customers not engaged in digital asset trading. Ongoing due diligence is required, and any resumption of trading necessitates verification and potential termination of the relationship if regulations aren't met.
GateNews1h ago
Digital Chamber sends a letter to the Senate: Requesting that the CLARITY Act be advanced to the consideration stage
The Chamber of Digital Commerce, the digital commerce chamber of the blockchain industry, on April 20, 2026, sent a letter to the Senate Committee on Banking, urging the committee to advance the legislative process for establishing the digital assets market structure to the formal markup stage, and to publish a public statement simultaneously on the X platform. The letter was also sent to Tim Scott, the committee chair, and others.
MarketWhisper3h ago
U.S. Senate Banking Committee Delays Crypto Market Structure Bill Review, April Hearing Unlikely
The U.S. Senate Banking Committee is unlikely to address a crypto market structure bill in April due to disagreements over stablecoin rewards. With a delay until May, the future of digital asset legislation remains uncertain, impacting the establishment of regulatory frameworks.
GateNews4h ago
Russia Set to Criminalize Unlicensed Crypto Services Operations
Russia's State Duma has introduced a draft bill to criminalize unlicensed crypto services, imposing fines and prison terms. The Supreme Court deems the proposal premature due to pending digital currency laws. The bill aims to expand regulatory oversight by the central bank over the crypto sector.
CryptoFrontNews6h ago
