🌎 South Korea Enhances Crypto Oversight with New Monitoring System

South Korea’s financial regulator is establishing a system to monitor unusual crypto trading, urging exchanges to cooperate and provide internal data.

Enhanced Oversight in South Korea’s Crypto Market

South Korea’s Financial Supervisory Service (FSS) is developing a system to monitor unusual crypto trading activities. This initiative aims to enhance transparency and oversight in the country’s crypto market. In a statement on July 4, the agency urged domestic trading platforms to share internal data to ensure compliance with new legislation effective from July 19.

Monitoring Unusual Trading Activities

The new system targets trades outside normal volume and price ranges, large transactions, and unusually delayed executions, as per guidelines outlined by the FSS. Matt Younghoon Mok, a senior foreign attorney and partner at Lee & Ko in Seoul, noted that these requirements could pose significant challenges for altcoins that cannot promptly meet regulatory standards.

“These requirements could pose significant challenges for altcoins that cannot promptly meet regulatory standards.”

Impact on Crypto Exchanges

Following the implementation of the Virtual Asset User Protection Act, South Korean crypto exchanges are set to re-evaluate over 1,000 listed tokens. This act aims to safeguard crypto investors’ rights and interests. Despite the extensive review, the Digital Asset Exchange Alliance, representing five major Korean exchanges, expects minimal mass delistings over the next six months, citing proactive regulatory compliance measures already in place.

The regulations will apply to nearly three dozen registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax. These exchanges will conduct initial reviews to determine whether to maintain or delist each token.