South Korea Launches Real-Time Crypto Surveillance System

As a seasoned crypto investor with a deep understanding of the Korean market, I welcome the announcement made by the Financial Supervisory Service (FSS) regarding the implementation of a 24-hour surveillance system to combat fraudulent activities in the cryptocurrency space. This is a significant step towards enhancing market integrity and instilling confidence among investors.

The Financial Supervisory Service (FSS) of South Korea announced the implementation of a round-the-clock monitoring system to identify and thwart illicit activities in the cryptocurrency sector.

According to the Financial Services Commission (FSS), our ongoing project aligns with South Korea’s groundbreaking Virtual Asset User Protection Act, which takes effect on July 19 and marks the country’s first comprehensive crypto legislation.

As a crypto investor, I’ve been keeping a close eye on the regulatory landscape in South Korea. From my perspective, starting in January and extending through May of this year, the Financial Services Commission (FSS) collaborated closely with local cryptocurrency exchanges to establish a real-time monitoring system. To accomplish this, they implemented a standard reporting format for transaction data submissions, which was modeled after the Korea Exchange (KRX). The goal was to identify and flag any unusual or suspicious trading activities within these digital asset platforms.

As a researcher studying cryptocurrency trading systems in South Korea, I can tell you that the monitoring system is specifically engineered to carefully screen out uncommon transactions. It employs advanced models and metric signals derived from simulations for this purpose. Notably, major local exchanges, responsible for approximately 99.9% of all cryptocurrency trades in South Korea, have implemented this system according to their most current standards.

As a crypto investor, I believe it’s crucial for exchanges to take proactive measures against illegal activities. The Financial Stability Supervisory (FSS) strongly advises setting up dedicated monitoring teams and leveraging auditing data, including on-chain data, to identify any signs of suspicious behavior. It’s important to remember that using confidential token information for unfair trading practices, manipulating prices through deceptive means, or falsifying circulation data are just a few examples of the illicit activities that we must work together to eradicate from the cryptocurrency market.

As an analyst, I would rephrase it as follows: By establishing a hotline and enhancing regulatory oversight, I facilitated the prompt reporting of suspicious transactions by exchanges.

Beginning July 19, the Virtual Asset User Protection Act, marking South Korea’s initial cryptocurrency legislation, will be enforced in its entirety. This law aims to prohibit unscrupulous activities within digital asset investments, such as exploiting insider information and market manipulation. Moreover, it requires suppliers to secure 80% of deposits using cold storage and provide users with insurance coverage for potential losses.

Lawmakers are now drafting a new piece of legislation in response to the User Protection Act, focusing on two key areas: controlling the use of stablecoins and enabling institutional investments in cryptocurrencies through legitimate channels.

South Korean cryptocurrency exchanges are implementing a new set of rules and conducting thorough evaluations of the 1,333 digital coins currently traded within their domestic market. This proactive measure is designed to enhance market integrity and instill trust among investors in regulated crypto markets, potentially influencing the direction of future regulations in South Korea.

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2024-07-04 20:06