South Korea Enforces 24/7 Surveillance on 600 Cryptos
2 min read
South Korea Enforces 24/7 Surveillance on 600 Cryptos
The Financial Service Commission (FSC) of South Korea has recently reached out to 29 registered cryptocurrency exchanges, such as Upbit, Bithumb, Coinone, Korbit, and Gopax. The exchanges have been instructed to conduct routine evaluations of their listed tokens and decide whether to continue supporting their trading activities. This directive is part of a broader effort to enforce the newly established virtual asset user protection law in South Korea.
The virtual asset user protection law is scheduled to take effect on July 19, as reported in the Korean Times. This legislation introduces severe punishments, including long-term imprisonment of more than one year or hefty fines calculated at three to five times the amount of any illegal profits made. Under this law, all 29 registered crypto exchanges must evaluate the 600 different cryptocurrency tokens listed on their platforms.
The new law requires exchanges to adhere to stricter guidelines when listing new tokens. They must re-evaluate existing tokens every six months to ensure compliance with the updated regulatory measures. Following the initial round of reviews, these platforms are mandated to perform maintenance checks every three months to ensure ongoing adherence to the guidelines.
Earlier in February, the South Korean government had issued new updates to the Virtual Asset Users Protection Act. By April, the FSC began suggesting stricter guidelines for token listings. These guidelines aimed to improve market oversight and security by, for example, preventing the listing of tokens from projects that have encountered security breaches or unresolved issues.
The FSC is also working on additional regulatory guidelines for cryptocurrency transactions, which could be implemented as early as next month alongside the user protection law. These additional guidelines are expected to further tighten the regulatory framework for crypto exchanges, enhancing overall market transparency and integrity.
To facilitate the effective implementation of these regulations, South Korea’s financial authorities are making organizational changes. The FSC plans to establish a new bureau that will focus exclusively on the oversight and management of virtual assets. This bureau will be responsible for the entire regulatory framework governing the cryptocurrency industry.
A proposal to establish this new bureau is set to be introduced on June 17 and reviewed by June 18. The creation of this dedicated bureau aims to streamline the policy-making process and ensure more efficient regulation of the burgeoning cryptocurrency sector.
These steps reflect South Korea’s commitment to creating a secure and transparent crypto market, ultimately protecting virtual asset users and maintaining the integrity of the financial system. By imposing stringent regulatory measures and routinely evaluating existing and new tokens, the country aims to curb illegal activities and foster a safer trading environment.
Great initiative by the FSC to protect users and maintain market integrity. Excited to see the positive impact!
More transparency and safety in the crypto market will encourage new investors. Proud of South Koreas initiatives!
Innovative and forward-thinking! South Koreas new bureau will certainly enhance the regulatory framework.
Applauding South Koreas strong regulatory measures to ensure transparency and security in the crypto market.
Protecting users should always be a priority. South Korea’s new law is a big win for crypto enthusiasts and investors!
Setting a global standard! These regulations could be a blueprint for other countries to follow.
The cost of compliance is going to drive smaller exchanges out of business. This is not supporting the ecosystem!
This is great news! Regular token evaluations and stricter guidelines will set a new standard for the industry.
Kudos to South Korea for stepping up! Protecting virtual asset users is crucial. Can’t wait to see the positive changes.
Ensuring better market oversight and security is a win-win for everyone involved. Great job, FSC!
The FSC is making it nearly impossible for new tokens to get listed. This isn’t protecting users; it’s overcomplicating everything.
Wow, this is a game changer! Regular evaluations will significantly reduce risks and improve overall market health.
An excellent move towards a more regulated and secure crypto environment. South Korea, you rock!
With these new guidelines, South Korea is setting a great example for global crypto markets. Well done!
Requiring exchanges to re-evaluate tokens every six months and maintenance checks every three months? Talk about overkill! 😤
Great step towards curbing illegal activities in the crypto space. This is a solid move by the FSC!
Implementing stricter guidelines might discourage new projects from entering the market. This is just bad for everyone.
This is the way forward! Regular evaluations and stricter guidelines will enhance trust in crypto exchanges.
I can’t believe the FSC is putting this much pressure on crypto exchanges! This is going to stifle innovation.
They’re making crypto trading sound like a crime. Not impressed with South Korea’s approach.
South Korea leading the way with these exemplary crypto regulations! Hopefully, more countries will follow suit.
The penalties under this new law are just draconian. Hefty fines and long-term imprisonment? C’mon FSC, there must be a better way!
This move shows South Korea’s commitment to a transparent and secure crypto market. Well done, FSC!
Stricter guidelines for listing tokens will limit diversity in the market. This doesn’t help anyone!
Impressive efforts by the FSC. These regulations will definitely help in creating a safer trading environment.
Transparency and security are key! Excited to see these changes improve the crypto space in South Korea.
Stronger regulations mean a safer environment for all crypto traders. Great job, FSC!
A more secure and transparent market will attract more investors. Way to go, South Korea!
This is exactly what the crypto world needs! Stricter guidelines and regular checks can bring more trust to the market.
User protection is paramount. Proud of South Korea for making significant strides in this direction!
Honestly, these new laws are way too harsh. Long-term imprisonment for crypto violations? 🤯 That’s insane!
Strong regulatory frameworks are essential for a healthy crypto market. Keep it up, South Korea!
I don’t see how these stringent regulations are going to foster a safer trading environment. This just looks like overreach. 🚫
These actions by the FSC will instill more confidence in the crypto market. Thank you, South Korea!
The establishment of a dedicated bureau for crypto oversight is a brilliant idea! This will streamline everything.
Establishing a new bureau to oversee crypto assets sounds like more bureaucratic red tape. 🙅♂️ Is this really necessary?
South Korea’s regulations are becoming suffocating. They’re trying to micromanage the entire crypto market. 😞
Such proactive measures! Regular token evaluations will make sure investments are safe and secure.
Maintenance checks every three months? This is just going to increase operational costs and headaches for exchanges. 😤
Fantastic move by the FSC! Ensuring token evaluations will definitely make the crypto space safer for everyone.
Way to go, South Korea! Ensuring user safety with stringent regulations is the need of the hour.
This is a nightmare for smaller exchanges. They won’t survive with all these regulatory hoops.
These severe punishments seem excessive for financial misconduct. It feels like the FSC is trying too hard to control the market.
Excited to see how these new regulations will improve market integrity and user safety in South Korea.