- South Korea’s FSC has decided to strengthen scrutiny over the crypto market.
- The move intends to confront the market’s increasing volatility following the US election.
- The Federal Reserve’s recent interest rate cut has also affected market volatility.
On November 8, 2024, South Korea’s Financial Supervisory Service (FSS) Governor, Lee Bok-hyun, announced plans to tighten oversight of the crypto market following the U.S. election results. The regulator is also focusing on stock market movements tied to the re-election of U.S. President Donald Trump. Heightened volatility in the crypto sector has prompted stricter regulations to address investor concerns.
South Korea has been actively working to expand its crypto market while prioritizing investor protection. The country’s efforts include an investor protection act, investigations into market manipulation, and initiatives supporting strategic crypto projects. As the crypto market has seen increased volatility, especially in lieu of the US elections and the Federal Reserve’s monetary policy adjustments, South Korea is strengthening its regulatory framework.
Trump-linked Memecoins Take a Hit
Crypto tokens associated with Trump, including TRUMP, MAGA, and TREMP, experienced significant gains during the election period before seeing sharp declines. Over the last 24 hours, TRUMP dropped 5%, MAGA fell 23.6%, and TREMP decreased 23.8%. Meanwhile, World Liberty Financial, a DeFi project linked to the Trump family, reportedly generated $1 million in unrealized gains after a modest token sale last month.
Read also: South Korea’s Crypto Surge: Opportunity and Risk
While memecoins linked to Trump faced downturns, Bitcoin and altcoins showed upward momentum. Optimism surrounding Trump’s return to the White House has boosted the U.S. crypto market, driving significant investments and leading to bullish trends in top cryptocurrencies. Market anticipation of the U.S. emerging as a “crypto capital” is further fueling this rally.
This sudden volatility is what has drawn the attention of South Korea’s financial authorities, prompting tighter regulatory measures. It remains unclear what specific steps the FSS will take to manage these fluctuations, but South Korea’s consistent focus on protecting investors and stabilizing the market indicates a proactive approach.
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