The Financial Supervisory Service（FSS）of South Korea has declared the opening of areal-time24-hoursurveillance system to identify and stop fraudulent activity in the cryptocurrencyspace.This article explores thesystem’scapabilities and its impact on the cryptomarket.
Points
- SouthKorea’sFSSlaunchesareal-time24-hourcryptosurveillancesystem.
- Thesystemaimstoidentifyandstopfraudulentactivities.
- Majorexchangesimplementthesystem,covering99.9%oftradingvolume.
- Thenewsurveillanceenhancesregulatoryoversightandmarketintegrity.
SouthKorea’sFinancial Supervisory Service（FSS）has announced the launch of areal-time24-hoursurveillance system designed to identify and stop fraudulent activity in the cryptocurrencyspace.This system represents a significant step towards enhancing regulatory oversight and ensuring market integrity in SouthKorea’scryptomarket.
SystemCapabilities
From January to May of thisyear,the FSS worked closely with local exchanges to build thereal-timesurveillancesystem.It implemented a standard reporting format for transaction datasubmissions,derived from the Korea Exchange（KRX）,to identify any unusualactivity.The system meticulously filters out unusual transactions using models and metric indications generated bysimulations.
FSS SurveillanceSystem|Source:CoinTelegraph
ImplementationandGuidelines
Major localexchanges,which handle99.9%of all cryptocurrency trading in SouthKorea,have constructed the monitoring system using theFSS’slateststandards.The FSS recommended that exchanges set up specialized monitoring teams and use auditingdata,includingon-chaindata,to find evidence of illicitactivity.The agency highlighted that using atoken’ssecret information for unfairtrading,manipulatingprices,or fabricating circulation data are examples of illicit acts in the cryptocurrencyspace.
The FSS has facilitated exchanges to report questionable transactions quickly by providing a hotline and strengthening regulatorymonitoring.
ImpactoftheNewLaw
TheVirtualAsset 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 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
The launch of SouthKorea’sreal-timecrypto surveillance system by the FSS marks a significant advancement in regulatoryoversight.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:Thereal-timesurveillancesystemenhancesregulatoryoversight,ensuringmarketintegrityinSouthKorea’scryptomarket.
- EnhancedSecurity:Bycovering99.9%ofthecountry’stradingvolumeandrequiringexchangestoreportsuspicioustransactions,thesystempreventsillegalactivities.
- InvestorProtection:TheVirtualAssetUserProtectionActmandatesinsuranceprogramsandstrictguidelinesforexchanges,protectinginvestorsandensuringmarkettransparency.
- FutureLegislation:Ongoinglegislativeeffortsaimtorefineandexpandcryptocurrencyregulations,addressingissueslikestablecoinsandinstitutionaltradingtofurtherstrengthenthemarket.