South Korea’s Financial Supervisory Service (FSS) is taking steps to tighten oversight of crypto trading platforms within its jurisdiction to combat fraudulent transactions. The regulator recently announced that local exchanges will be required to establish a continuous monitoring system for unfair transactions and report abnormal activities. This move is aimed at creating a more secure and transparent environment for cryptocurrency trading in the country.
As part of these efforts, the FSS has developed the “Abnormal Transaction Monitoring Guidelines” in collaboration with exchanges. This new system is set to go live on July 19, coinciding with the implementation of South Korea’s first regulatory framework for crypto investor protection, the Virtual Asset User Protection Act. By enforcing stricter monitoring and reporting measures, the FSS hopes to improve compliance and enhance consumer protection in the crypto market.
To alleviate fears of potential mass delisting of tokens, the Digital Asset Exchange Alliance (DAXA) and 20 local exchanges have introduced the “Best Practices for Supporting Digital Asset Transactions” guideline. This framework allows for a more lenient review process for assets that have been traded for over two years in eligible overseas virtual asset markets with sufficient regulation. By providing clear guidelines for asset review and delisting, the industry seeks to streamline operations and ensure regulatory compliance.
South Korea’s proactive approach to crypto regulation reflects its commitment to promoting market stability and protecting investors. By setting high standards for exchange operations and consumer protection, the country aims to establish itself as a leader in addressing the challenges faced by the crypto industry. These regulatory changes are expected to not only deter financial crimes but also enhance transparency and legitimacy in the cryptocurrency market.
The tightening of oversight and implementation of new monitoring guidelines in South Korea’s crypto market signal a significant shift towards a more regulated and secure environment for digital asset trading. By taking proactive steps to combat fraudulent transactions and address concerns about token delisting, the country is paving the way for sustainable growth and innovation in the industry. As these regulatory changes take effect, market observers anticipate a more stable and investor-friendly crypto market in South Korea.
