South Korea’s Financial Supervisory Service (FSS) is developing a system to monitor unusual crypto trading activity, aiming to enhance transparency and oversight in the crypto market.
In a July 4 statement, the FSS urged domestic trading platforms to integrate their internal data with this system to ensure compliance with new legislation effective July 19.
The system will focus on trades outside normal volume and price ranges, large transactions, and unusually delayed executions, as outlined by FSS guidelines. Matt Younghoon Mok, senior foreign attorney and partner at Lee & Ko in Seoul, told Bloomberg that these requirements could pose “significant challenges for altcoins that cannot promptly meet regulatory standards.”
As reported by crypto.news, South Korean crypto exchanges are set to re-evaluate over 1,000 listed tokens following the implementation of the Virtual Asset User Protection Act, which aims to safeguard investors’ rights and interests.
Despite the extensive review, the Digital Asset Exchange Alliance, representing five major Korean exchanges, anticipates minimal “mass delistings” over the next six months, due to proactive regulatory compliance measures already in place. The regulations will apply to nearly three dozen registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, which will conduct initial reviews to decide whether to maintain or delist each token.
Under the new regulatory framework, crypto exchanges must establish a review committee to evaluate factors such as the reliability of the issuing entity, user protection measures, technology and security standards, and regulatory compliance.