South Korea’s Financial Supervisory Service (FSS) is stepping up its efforts to monitor suspicious crypto transactions on exchanges with the launch of a new “continuous monitoring system.” This system, set to go into effect on July 19, will allow the regulator to filter out abnormal transactions and report them to the FSS through a dedicated data transmission line.
Major crypto exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax, have already registered with the FSS and will be subject to monitoring under the Virtual Asset User Protection Act. This legislation, passed in 2023, aims to regulate unfair trade practices and protect investors in the crypto market.
The FSS’s move comes as the United States Securities and Exchange Commission recently approved spot Bitcoin and Ether exchange-traded funds, prompting South Korean officials to consider the potential impact of listing these investment vehicles on local exchanges. While some researchers caution that more research is needed before approval, others believe that the influx of capital into the crypto market could be significant.
With the implementation of the continuous monitoring system, South Korea is taking proactive steps to ensure the integrity of its crypto market and protect investors from illegal trading practices. As the crypto industry continues to evolve, regulatory measures like these will play a crucial role in maintaining transparency and security within the market.