In 2024, there has been a significant increase in activity within the global crypto regulatory industry, as prominent countries such as the US and UK have implemented new strategies.
The Financial Supervisory Services (FSS) of South Korea has declared its intention to conduct inspections on two cryptocurrency exchange platforms, including Upbit, Bithumb, Coinone, Gopax, and Korbit, which are all domiciled in South Korea and operate using the Korean Won currency.
The inspection is a component of the Second Half Virtual Asset Operator Inspection Operation Plan, with the objective of promoting market order by imposing stringent penalties on illicit acts and assisting enterprises in enhancing their self-regulatory capabilities.
In addition, the inspections will be conducted in three areas: the user protection system, compliance with the Virtual Asset Act, and the vulnerability of businesses to user protection and compliance with legislation regarding unfair trading.
In recent months, the South Korean government has implemented several regulatory frameworks, including the imposition of supervisory fees on crypto exchanges like Upbit, Bithumb, and Coinone, as well the establishment of new monitoring systems to track crypto transactions.
The FSS has provided a clear description of the inspection procedures and has explained its intention to operate in an adaptable manner throughout the process.
