Regulatory Framework - South Korea is tightening regulations on crypto platforms, using app stores as a means of enforcement to distinguish between compliant digital finance and unregistered crypto activities [1] - The National Assembly has passed amendments to the Capital Markets Act and the Electronic Securities Act, establishing a legal framework for tokenized securities across various financial products [2] - The Financial Services Commission will lead the implementation of these laws, which are set to take effect in January 2027 after a one-year preparation period [3] Tokenized Securities - The new framework defines security token offerings as securities under the Capital Markets Act, with issuance and distribution information recorded on a blockchain-based distributed ledger [2] - This regulatory framework is expected to enhance the use of smart contracts and facilitate distributed ledger-based securities and account management [3] Enforcement Measures - Google Play has introduced new restrictions for crypto apps in South Korea, requiring crypto exchanges and wallet providers to register as virtual asset service providers with the Financial Intelligence Unit to remain listed [4] - Starting January 28, 2024, Android users in South Korea will be unable to download or update apps from unregistered overseas exchanges, effectively blocking major global platforms like Binance and Bybit [5] - As of Q3 2025, Android users account for over 80% of the South Korean market, making these restrictions a significant enforcement tool [6]

Core Insights - Investment scams via WhatsApp groups have significantly increased, prompting regulatory actions from authorities like the SEC [1][4] - The SEC has charged several companies and investment clubs for their involvement in a WhatsApp-based crypto scam that defrauded investors of over $14 million [3][6] Group 1: SEC Charges and Allegations - The charged entities include Morocoin Tech Corp., Berge Blockchain Technology Co., Cirkor Inc., and investment clubs such as AI Wealth Inc. and Lane Wealth Inc. [2] - The SEC's complaint details a multi-step fraud scheme that involved social media promotions and manipulation of group chats to gain victims' trust [4][6] - Fraudsters promised profits from AI-generated investment tips, leading victims to invest in fake crypto trading platforms [5][6] Group 2: Operation Details - The fraudulent activities reportedly took place from January 2024 to January 2025, with the defendants operating investment clubs through WhatsApp [6] - Victims were directed to open accounts on fake trading platforms that falsely claimed to have government licenses [6][7] - The platforms offered fictitious "Security Token Offerings" and when investors sought to withdraw funds, they were asked to pay "advance fees," exacerbating their losses [7] Group 3: Financial Misappropriation - The SEC claims that the stolen funds were funneled overseas through a network of bank accounts and crypto wallets [7]