The Financial Supervisory Service (FSS) of South Korea has summoned five major crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, following aggressive fee hikes post new crypto laws. This meeting, held on July 24, 2024, addresses concerns about fair competition and user protection.
Bithumb’s recent attempt to raise its fee rate from 2.2% to 4.0% per annum, which was later withdrawn, triggered the FSS intervention. Other exchanges like Upbit and Korbit also increased their rates following the Virtual Asset User Protection Act. The FSS emphasized that fees must be “reasonably calculated” based on operating income and incurred expenses.
This scrutiny is part of a broader regulatory shift in South Korea’s crypto market, including a system to monitor unusual trading activity. The Digital Asset Exchange Alliance (DAXA) is also reviewing over 1,300 digital assets for compliance. Non-compliance could result in severe penalties, signaling stringent oversight in the crypto market.
The strategic importance of this event lies in its potential to reshape the competitive landscape and enhance user protection in South Korea’s crypto industry.
