South Korea Regulator Targets Top Crypto Exchanges

South Korea’s Financial Supervisory Service (FSS) has summoned the nation’s top five cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—to address recent fee hikes amid new regulations.

This action, taken on July 24, 2024, is part of a broader regulatory crackdown following the introduction of the Virtual Asset User Protection Act.

The FSS’s scrutiny comes after Bithumb raised its deposit fee from 2.2% to 4% per year, a move it later retracted. Other exchanges like Upbit and Korbit have also increased their fees since the Act’s enforcement. The FSS is investigating whether these fee increases comply with the law’s requirement for “reasonable” fees.

The meeting aimed to clarify how fees are calculated and to address disputes over their fairness. Exchanges were asked to provide detailed information on their fee structures and deposit practices.

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This oversight is part of South Korea’s wider regulatory efforts to tighten control over the cryptocurrency market. The FSS has also introduced measures to monitor unusual trading patterns, while the Digital Asset Exchange Alliance (DAXA) reviews over 1,300 digital assets for compliance. The new regulations signal a significant shift towards stricter oversight in the crypto sector.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.