South Korean government to launch crypto transaction monitoring system
Turner Wright7 hours agoSouth Korean government to launch crypto transaction monitoring systemCrypto exchanges subject to a new South Korean law have implemented a system allowing authorities to receive reports on suspicious transactions.991 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksSouth Korea’s Financial Supervisory Service (FSS) has launched a “continuous monitoring system” for suspicious crypto transactions on exchanges.
In a July 4 notice, the FSS said it had worked with South Korean digital asset exchanges to establish a system for “constant monitoring of abnormal transactions.” The system’s implementation will occur on July 19, when the Virtual Asset User Protection Act — whose legislation passed in 2023 to regulate unfair trade practices and protect investors — goes into effect.
According to the FSS, major crypto exchanges subject to the law have established a system allowing the regulator to filter out abnormal transactions, covering roughly 99.9% of the country’s trading volume. Once identified, the exchange’s system will report suspicious transactions to the FSS through a dedicated data transmission line. These transactions will include those intended to manipulate the market or engage in other illegal trading.Source: Financial Supervisory Service
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As of June 16, 29 crypto exchanges, including Upbit, Bithumb, Coinone, Korbit and Gopax, were registered with the FSS and subject to monitoring under the Virtual Asset User Protection Act. The law will also require the exchanges to have stricter review guidelines for token listings.
Since the United States Securities and Exchange Commission approved spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds, South Korean officials have been weighing the potential impact of listing the investment vehicle on local exchanges. One researcher cautioned that more research is needed before approval, as a significant amount of capital will flow into the crypto market.
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