South Korea's inaugural cryptocurrency law, the Virtual Asset User Protection Act (VAUPA), officially took effect on July 19, 2024. The law, which was approved on July 18, 2024, and given a one-year grace period to refine regulation details, aims to protect crypto investors and establish a comprehensive legal framework for the domestic digital asset industry. Key provisions of the law include requiring digital asset exchanges to keep 80% of user funds in cold storage, segregate users' cash in licensed banks, and obtain insurance or set up a reserve fund. The Financial Services Commission (FSC) will enforce these regulations to ensure compliance and safeguard investor funds. The law represents a significant milestone in the regulation of South Korea's expanding cryptocurrency market.