South
Korea’s
Financial
Supervisory
Service
(FSS)
plans
to
tighten
oversight
of
crypto
trading
platforms
under
its
jurisdiction
to
eliminate
fraudulent
transactions.

In
a
July
4
notice,
the
regulator
announced
that
local
exchanges
must
establish
a
“continuous
monitoring
system
for
unfair
transactions”
and
report
“abnormal
transactions”
via
a
dedicated
transmission
line.

 

According
to
the

notice:

“To
ensure
that
virtual
asset
exchanges
can
smoothly
fulfill
their
legal
obligations,
the
Financial
Supervisory
Service
has
jointly
prepared
the
‘Abnormal
Transaction
Monitoring
Guidelines’
with
exchanges
and
supported
the
establishment
and
operation
of
a
regular
abnormal
transaction
surveillance
system.”

The
new
system
will
go
live
on
July
19,
coinciding
with
the
implementation
of
South
Korea’s
first
regulatory
framework
for
crypto
investor
protection,
the
Virtual
Asset
User
Protection
Act.

Mass
token
delisting
unlikely

In
a
parallel
development,
the
Digital
Asset
Exchange
Alliance
(DAXA)
and
20
local
exchanges
have
addressed
fears
of
a
possible
token
mass
delisting
with
the
“Best
Practices
for
Supporting
Digital
Asset
Transactions”
guideline.

In
their
July
2

statement,
DAXA
stated
that
the
guideline
provides
a
framework
for
exchanges
to
review
and
delist
digital
assets.
The
guideline
would
allow
a
more
lenient
review
plan
for
assets
that
have
traded
for
over
two
years
in
“eligible
overseas
virtual
asset
markets
with
sufficient
regulation.”

Earlier
reports

suggested
that
South
Korean
exchanges
would
review
the
listing
of
over
1,000
altcoins
in
the
next
six
months
to
ensure
regulatory
compliance.
This
raised
concerns
within
the
crypto
community
about
potential
mass
delistings
of
as
many
as
600
coins.

 

Meanwhile,
these
regulatory
moves
further
reflect
South
Korea’s
proactive

approach
to
crypto
regulation.
The
Asian
country
aims
to

set
high
standards
for
exchange
operations
and
consumer
protection,
positioning
it
as
a
leader
in
managing
the
crypto
industry’s
challenges.

Market
observers
noted
that
the
regulatory
changes
will
enhance
market
stability,
protect
investors,
and
deter
financial
crimes
in
the
crypto
sector.

Go to Source
Author: Oluwapelumi Adejumo

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