In a recent move, South Korean regulators are taking actions to block traders from dumping stolen coins on the country’s cryptocurrency exchanges. The decision comes in the wake of a suspected hack on the NFPrompt (NFP) platform last month, which raised concerns about the trading of hacked tokens in the nation.
The Financial Supervisory Service (FSS) and the Financial Services Commission (FSC) are spearheading the efforts to prevent the listing of hacked tokens on crypto exchanges. The regulators have expressed their intention to probe transactions involving suspected stolen coins and allegations of price manipulation. Furthermore, they are implementing measures to enhance the oversight of exchanges and prevent unfair or illegal practices within the industry.
Following the NFP coin incident, where a South Korean trader reportedly purchased stolen assets from a hacker, there has been a public outcry within the crypto community. The investor’s admission of buying the coins in an over-the-counter transaction has sparked concerns about the integrity of trading platforms like Coinone. The exchange, in response, added NFP to its list of “investment cautionary coins” due to security concerns raised by the incident.
Domestic exchanges are in the process of establishing systems to prevent unfair practices and enhance security measures. Coinone is conducting an internal review to determine whether the leak of NFPrompt foundation’s assets was a result of hacking. The exchange is committed to collaborating with the foundation to uncover the truth behind the incident and ensure the protection of users’ funds.
South Korean regulators are planning to introduce exceptional provisions for banning deposit and withdrawals on exchanges to tackle potential threats of stolen coins flooding the market. The aim is to develop industry-wide standards that facilitate the communication of information about suspicious transactions, creating a mechanism to respond swiftly to security breaches and leaks. The focus is also on scrutinizing over-the-counter transactions to prevent instances of theft reported by law enforcement agencies.
The recent efforts by South Korean regulators to safeguard crypto exchanges from stolen coins and illicit activities demonstrate a commitment to enhancing the security and integrity of the cryptocurrency market. The focus on regulatory oversight, exchange transparency, and industry collaboration is essential to building trust among investors and promoting responsible trading practices in the evolving digital asset landscape.
