Korbit, a well known Korean cryptocurrency exchange, had revised its terms of service by introducing a new course of action to protect crypto fraud victims.
Korbit had been considered as a significant player in the Korean market. It has recently announced a new set of conditions to its terms of services by establishing itself with more powers to tackle fraudulent activities in its platform.
As per the terms published by the exchange recently, the specified terms of services give Korbit the authority to grab hold of cryptocurrency and funds from its clients by the direction given by the “Financial Authorities.”
As per the revision of terms specified in its website, the new clauses for victims of financial fraud are:
The Company may collect funds and virtual assets from fraud or other crimes and pay them to the victims upon request of the financial authorities or financial institutions.
It further stated,
These terms will be effective from 24 February 2020. The previous version of the terms which had been effective from 11 February 2019 shall be replaced by these terms.
Especially, this clause is explained as for the benefit of “victims of financial fraud.” Clients of this exchange are supposed to accept the new terms, or else their service agreement will be terminated before one day to the new terms coming into effect.
When the new terms are implemented, it is anticipated that it will be used by Korbit to reimburse crypto fraud victims, enabling the exchange to take control of assets; so, at a later date, it can refund those when there is a loss from their cryptocurrency dealings.
This process is designed to offer as a means of compensation for crypto fraud victims. Moreover, it comes at a time where there are huge crimes that are happening in the cryptocurrency sector, with a growing number of hackers and scammers using cryptocurrency to deceive their victims. It comes as a relief measure over scamming and crypto fraud in South Korea and several parts of the world.