What is the Potential Impact of No-Fault Liability in Crypto?
The question of no-fault liability in crypto is an intriguing one. What does it mean? In essence, it’s about holding a party accountable for damages without needing to establish blame or negligence. For crypto exchanges in South Korea, it means they could face serious consequences without needing to prove they acted wrongly. This could have significant ramifications for how these exchanges operate.
What is the proposal? The Financial Services Commission (FSC) in South Korea is looking at applying no-fault liability to virtual asset operators. This could bring their liabilities in line with traditional financial institutions. The aim? To ramp up accountability and hopefully improve user protection and market stability.
