South Korea’s cryptocurrency exchanges are under more scrutiny as the Financial Supervisory Service (FSS) works to build a strong tracking system to stop traders from doing strange things in the cryptocurrency market.
The FSS announced today that it is going to set up a full monitoring system to keep an eye on trades that don’t fit into normal price and volume ranges, feature large transactions, or have executions that take a long time than usual. This project is part of the country’s attempts to make the cryptocurrency industry more open and under the watchful eye of regulators.
The FSS asked local trading platforms to work together by giving the monitoring system access to their own data in a statement released on July 4. Working together is very important to make sure that new laws that go into effect on July 19 are followed. These laws are meant to protect investors and keep the market honest.
South Korea Implements Stringent Monitoring for Crypto Exchanges Ahead of Regulations
Matt Younghoon Mok, a senior foreign attorney and partner at Lee & Ko in Seoul, talked about the problems that these new rules could cause, especially for alternative cryptocurrencies (altcoins) that might not be able to meet the new rules right away. In an interview with Bloomberg, Mok stressed how important it was for exchanges to change quickly to avoid possible legal problems.
According to the Virtual Asset User Protection Act, South Korean exchanges are reviewing more than 1,000 tokens that they have posted. By putting in place strict governing measures, this law aims to protect the rights and interests of crypto investors.
The Digital Asset Exchange Alliance, which is made up of big Korean exchanges, expects there to be few “mass delistings” in the next six months, even though the review process is very strict. They say that this is what they expect because proactive regulatory compliance measures are already in place on all domestic sites.
Under the new rules, almost thirty registered cryptocurrency exchanges, such as well-known ones like Upbit, Bithumb, Coinone, Korbit, and Gopax, will check each token’s original listing to see if it meets the requirements for continued listing.
