South Korea Cracks Down on Crypto Exchanges, Tightens Oversight

South Korea’s Financial Supervisory Service (FSS) is set to crack down on virtual asset exchanges, focusing on uncovering illegal or suspicious activities.

Reports indicate that the FSS will enforce strict penalties for any misconduct and may push for regulatory changes to address any gaps in the system. The upcoming inspections aim to ensure that crypto platforms adhere to current laws and identify any questionable transactions.

This move aligns with South Korea’s broader efforts to safeguard crypto investors, following the recent implementation of the “Virtual Asset User Protection Act.”

This law, effective since July 19, mandates protective measures such as separating customer assets from exchange funds and insuring against hacks.

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Meanwhile, global regulators are also tightening their grip on digital asset platforms. For instance, Hong Kong has made operating an unlicensed crypto exchange a criminal offense, and the UK recently fined Coinbase’s British arm for compliance failures.

Alexander Stefanov