SouthKorea’sFinancial Supervisory Service（FSS）has launched a continuous monitoring system for suspicious crypto transactions onexchanges.This article details thesystem’scapabilities and its implications for the cryptocurrency market in SouthKorea.
Points
- FSSlaunchesamonitoringsystemforsuspiciouscryptotransactions.
- Thesystemcovers99.9%ofthecountry’stradingvolume.
- MajorexchangesmustreportabnormaltransactionstotheFSS.
- Thenewsystemenhancesregulatoryoversightandmarketintegrity.
SouthKorea’sFinancial Supervisory Service（FSS）has launched a“continuousmonitoringsystem”designed to identify and stop fraudulent activity in the cryptocurrencyspace.This system is a significant step towards enhancing regulatory oversight and ensuring marketintegrity.
SystemCapabilities
According to theFSS,major crypto exchanges subject to the law have established a system allowing the regulator to filter out abnormaltransactions,covering roughly99.9%of thecountry’stradingvolume.Onceidentified,theexchange’ssystem will report suspicious transactions to the FSS through a dedicated data transmissionline.These transactions include those intended to manipulate the market or engage in other illegaltrading.
FSS MonitoringSystem|Source:CoinTelegraph
ImplementationandGuidelines
As of June16,29cryptoexchanges,includingUpbit,Bithumb,Coinone,Korbit,andGopax,were registered with the FSS and subject to monitoring under the Virtual Asset User ProtectionAct.The law requires these exchanges to have stricter review guidelines for token listings and to set up specialized monitoring teams using auditingdata,includingon-chaindata,to find evidence of illicitactivity.
The FSS recommended that exchanges implement a hotline for quickly reporting questionable transactions and strengthen regulatorymonitoring.This proactive approach aims to prevent the misuse of confidentialinformation,marketmanipulation,and the fabrication of circulationdata.
ImpactoftheNewLaw
The Virtual Asset User ProtectionAct,SouthKorea’sfirst cryptocurrencylaw,will become fully operative on July19.It seeks to outlaw unethical behaviors in cryptocurrencyinvestment,including using confidential information for personal gain and manipulatingmarkets.The act mandates that providers enroll in insurance programs for user compensation in case of securityincidents.It also requires suppliers to guarantee80%of deposits in cold storage and give users compensationinsurance.
FutureRegulations
Legislators in the country are currently working on afollow-upbill to the User ProtectionAct,wherein issues like regulating stablecoins and permitting institutional cryptocurrency trading are beingdeliberated.South Korean exchanges have adopted a new code of conduct and are reviewing1,333cryptocurrencies tradeddomestically,aiming to strengthen market integrity and boost investor confidence in regulated cryptomarkets.
Conclusion
SouthKorea’sFSS has taken a significant step in enhancing regulatory oversight with the launch of a continuous monitoring system for suspicious cryptotransactions.Thissystem,coupled with the Virtual Asset User ProtectionAct,aims to ensure market integrity and protectinvestors.The ongoing efforts to refine cryptocurrency regulations highlight thecountry’scommitment to creating a secure and transparent cryptomarket.
解説
- RegulatoryOversight:TheFSS’scontinuousmonitoringsystemrepresentsasignificantadvancementinregulatoryoversight,ensuringmarketintegrityinSouthKorea’scryptomarket.
- EnhancedSecurity:Bycovering99.9%ofthecountry’stradingvolumeandrequiringexchangestoreportsuspicioustransactions,thesystemenhancessecurityandpreventsillegalactivities.
- InvestorProtection:TheVirtualAssetUserProtectionActmandatesinsuranceprogramsandstrictguidelinesforexchanges,protectinginvestorsandensuringmarkettransparency.
- FutureLegislation:Ongoinglegislativeeffortsaimtorefineandexpandcryptocurrencyregulations,addressingissueslikestablecoinsandinstitutionaltradingtostrengthenthemarketfurther.