Republic of Korea: Partial Amendment to Act on Protection of Virtual Asset Users (Bill No. 2217223) introduced to National Assembly

On 4 March 2026, the Partial Amendment to the Act on the Protection of Virtual Asset Users (Bill No. 2217223) was introduced to the National Assembly. The Bill would establish specific requirements for the segregation of user assets. The Bill would amend Article 7 to require operators to store users’ virtual assets in separate virtual asset addresses, rather than relying solely on internal accounting records. The explanatory note of the Bill refers to a recent incident in which virtual asset operators sold quantities exceeding their actual holdings, contributing to price fluctuations. While the existing Act requires operators to separate their own assets from those of users, it does not prescribe the method for doing so. In practice, some operators have relied on internal ledger entries rather than distinct virtual asset addresses.