South Korean Regulators to Launch ‘Full-scale Probes’ into ‘Unfair Crypto Transactions’
South Korean financial regulators will launch “full-scale investigations” into “unfair crypto transactions.”
Per Daehan Kyungjae, the Financial Services Commission (FSC) announced on July 7 that it will create an “investigation system” that will begin operating on July 19.
This means the new system will launch on the same day the Virtual Asset User Protection Act comes into force.
The FSC will work closely with the nation’s other major financial regulatory body, the Financial Supervisory Service (FSS).
The bodies say they “have prepared” for the new act by co-creating “a specialized organization” for investigating what they term “unfair virtual asset transactions.”
By this, the regulators mean crypto transactions made “using undisclosed information,” as well as “price manipulation trading.”
The regulators will also target companies and individuals they suspect of “trading self-issued coins” to their own benefit.
The regulators will comb data they receive from crypto exchanges, and will also rely on reports submitted via the FSS’s new reporting center.
South Korean regulators are increasing pressure on local crypto exchanges to root out questionable trading, part of efforts to improve investor protection with a new digital-asset law that takes effect later this month. (Bloomberg) https://t.co/cYn8Ju8p05
— Financial Services Commission – FSC Korea (@FSC_Korea) July 4, 2024
The FSC said it would also probe transactions using its own monitoring systems.
The body added that it will use data investigation probes, “on-site data seizures,” and IT “forensics” to help it identify possible violators.
It added that it had “established a system of cooperation” with overseas regulators and foreign crypto exchanges.
The regulator added that it
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