South Korea’s Financial Supervisory Service (FSS) is launching a system to monitor unusual crypto trading activities, urging exchanges to share internal data. This system aims to enhance transparency and will be enforced starting July 19.
The FSS’s guidelines target abnormal trades, large transactions, and delayed executions. The new requirements may challenge altcoins struggling with regulatory standards. This initiative follows the Virtual Asset User Protection Act, which mandates reevaluation of over 1,000 tokens by South Korean exchanges.
Despite the extensive review, the Digital Asset Exchange Alliance expects few delistings, thanks to proactive compliance measures. Nearly three dozen registered exchanges like Upbit, Bithumb, and Coinone will conduct initial reviews to decide on token listings.
The new framework requires exchanges to establish review committees, focusing on the reliability of issuers, user protection, technology, security, and regulatory compliance. This move aims to ensure a safer and more transparent crypto market in South Korea.
