South Korea Launches Monitoring System for Crypto Transactions Ahead of New Investor Protection Act

cryptonews.com:

The Financial Supervisory Service (FSS) of South Korea announced a “continuous monitoring system” on July 4 for suspicious cryptocurrency transactions on exchanges. The new system, established in collaboration with South Korean digital asset exchanges, will go live on July 19, coinciding with the implementation of the Virtual Asset User Protection Act.

Crypto exchanges subject to a new South Korean law will have to implement a system allowing authorities to receive reports on suspicious transactions to comply with the new system.

The FSS stated that the system would enable constant monitoring of abnormal transactions to filter out and report suspicious activities, including market manipulation and other illegal trading practices. The monitoring will cover approximately 99.9% of the country’s trading volume, ensuring comprehensive market oversight.

South Korea's FSS launches a crypto monitoring system to track suspicious transactions.

This system, covering 99.9% of the country's crypto trading volume, goes live on July 19, aligning with the Virtual Asset Protection Act.

29 exchanges will be subject to this new law.

— Moonward Capital (@moonwardcapital) July 4, 2024

Additionally, the agency advised exchanges to establish dedicated teams to monitor dubious transactions and provided guidelines for identifying illegal activities through auditing information such as on-chain data. These illegal activities include using undisclosed information for unfair trading, price manipulation, and forging circulation data.

Under the new framework, once suspicious transactions are identified, they will be reported to the FSS through a dedicated data transmission line. The initiative is part of broader efforts to regulate unfair trade