- South Korea’s FSS will start an investigation into leading local crypto exchanges.
- Two major South Korean exchanges are a part of the probe.
- The FSS seeks to locate and eradicate fraud or illicit transactions.
South Korea’s Financial Supervisory Service (FSS) announced on Tuesday that it is launching an investigation into major crypto exchanges in the country, including Upbit, one of the leading trading platforms. The FSS aims to identify and address any illicit or unfair practices within these exchanges.
According to a report from Yonhap News Agency, the FSS will look into these crypto trading platforms to identify and address any illicit or unfair practices. This marks the first time the FSS has conducted such a probe since the new Virtual Asset Users Protection Act took effect in July.
The new regulations introduce hefty fines, including potential life imprisonment for those who profit more than 5 billion won ($3.7 million) from illicit crypto activities. The FSS has indicated it has already detected “unusual cases” in two South Korean-won-based exchanges, prompting further investigation, stating:
“The FSS will establish market order through stern punishment against illegal activities that may be identified in the process of its inspection, and will push for the revision of regulations if necessary by identifying the areas in the system where improvements are needed.”
South Korea only has four digital asset trading platforms based on the Korean Won. Three other crypto trading platforms and a wallet services provider will also be a part of this probe. The regulator has indicated the probe might also include other firms as well within its ambit.
While the inspection will include a thorough investigation for illicit transactions, the FSS will also make sure that the companies are complying with local regulations and keeping transaction records and making sure to conduct Know Your Customer (KYC) process.
This investigation follows the FSS’s recent implementation of comprehensive monitoring systems to detect and prevent illegal activities within the local crypto market. These systems provide real-time analysis of trading patterns, aiding the regulator in identifying suspicious transactions.
The FSS’s proactive approach signals its dedication to bring in a transparent and secure crypto environment in South Korea.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
