South Korea’s Financial Supervisory Service (FSS) is taking proactive steps to tighten oversight of crypto trading platforms within its jurisdiction. The regulator recently announced that local exchanges will be required to establish a continuous monitoring system for unfair transactions and report any abnormal activities promptly. This move aims to eliminate fraudulent transactions and ensure compliance with legal obligations in the crypto market.
To support the implementation of the new regulatory framework, the FSS has collaborated with virtual asset exchanges to develop Abnormal Transaction Monitoring Guidelines. This initiative will facilitate the establishment and operation of a surveillance system focused on detecting and reporting suspicious activities in the crypto market. The guidelines are set to be enforced starting July 19, coinciding with the rollout of South Korea’s Virtual Asset User Protection Act.
In response to concerns about potential mass delistings of tokens, the Digital Asset Exchange Alliance (DAXA) and 20 local exchanges have introduced Best Practices for Supporting Digital Asset Transactions. This guideline offers a structured framework for reviewing and potentially delisting digital assets, with a particular focus on assets that have been traded for over two years in eligible overseas markets with robust regulation. These measures are aimed at safeguarding the integrity of the market and protecting investors from potential risks.
The recent regulatory initiatives in South Korea underscore the government’s commitment to setting high standards for exchange operations and ensuring consumer protection in the crypto sector. By implementing stringent oversight measures and introducing regulatory frameworks, South Korea is positioning itself as a leader in addressing the challenges within the crypto industry. Industry experts believe that these regulatory changes will not only enhance market stability but also help to deter financial crimes and protect investors from fraudulent activities in the crypto market.
South Korea’s efforts to strengthen regulation and oversight in the crypto market signal a new era for the industry in the country. By collaborating with industry stakeholders and implementing proactive measures, South Korea is paving the way for sustainable growth and innovation in the crypto sector. As the regulatory landscape continues to evolve, it is crucial for market participants to stay informed and compliant with the latest guidelines to ensure a safe and secure trading environment for all stakeholders.
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