The Financial Supervisory Service (FSS) of South Korea has unveiled a collaborative effort with local digital asset exchanges to implement a new surveillance system. This initiative, aimed at continuous monitoring of cryptocurrency transactions for suspicious activities, was announced on July 4. It comes in response to the Virtual Asset User Protection Act, which was passed in 2023 to regulate trading practices and protect investors. The act is scheduled to come into effect on July 19.
Under the new legislation, major cryptocurrency exchanges have reportedly established a comprehensive monitoring system, covering nearly all of the country’s trading volume (approximately 99.9%). This system enables the FSS to detect and block transactions deemed suspicious or involved in illicit trading or market manipulation. Exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, among others, have registered with the FSS and are subject to monitoring as per the Virtual Asset User Protection Act, effective from June 16.
Moreover, the regulatory framework mandates stricter criteria for reviewing token listings on these platforms. South Korean authorities are also assessing the impact of approving investment vehicles such as spot Bitcoin and Ether exchange-traded funds, following similar decisions by the US SEC. Experts caution that further research is necessary due to the significant capital inflows into the cryptocurrency market.
In other crypto-related news today, XRP shows potential for a rebound amidst the growing Ripple ecosystem.
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