South Korea Probes Upbit, Exchanges Underneath New Crypto Legal guidelines

• South Korea’s FSS will begin an investigation into main native crypto exchanges.
• Two main South Korean exchanges are part of the probe.
• The FSS seeks to find and eradicate fraud or illicit transactions.

South Korea’s Monetary Supervisory Service (FSS) introduced on Tuesday that it’s launching an investigation into main crypto exchanges within the nation, together with Upbit, one of many main buying and selling platforms. The FSS goals to determine and handle any illicit or unfair practices inside these exchanges.

In line with a report from Yonhap Information Company, the FSS will look into these crypto buying and selling platforms to determine and handle any illicit or unfair practices. This marks the primary time the FSS has performed such a probe for the reason that new Digital Asset Customers Safety Act took impact in July. 

The brand new rules introduce hefty fines, together with potential life imprisonment for individuals who revenue greater than 5 billion gained ($3.7 million) from illicit crypto actions. The FSS has indicated it has already detected “uncommon circumstances” in two South Korean-won-based exchanges, prompting additional investigation, stating:

“The FSS will set up market order by way of stern punishment in opposition to unlawful actions that could be recognized within the strategy of its inspection, and can push for the revision of rules if needed by figuring out the areas within the system the place enhancements are wanted.”

South Korea solely has 4 digital asset buying and selling platforms based mostly on the Korean Gained. Three different crypto buying and selling platforms and a pockets providers supplier will even be part of this probe. The regulator has indicated the probe may also embrace different companies as nicely inside its ambit.

Whereas the inspection will embrace a radical investigation for illicit transactions, the FSS will even be sure that the businesses are complying with native rules and protecting transaction data and ensuring to conduct Know Your Buyer (KYC) course of.

This investigation follows the FSS’s latest implementation of complete monitoring methods to detect and stop unlawful actions throughout the native crypto market. These methods present real-time evaluation of buying and selling patterns, aiding the regulator in figuring out suspicious transactions.

The FSS’s proactive method alerts its dedication to herald a clear and safe crypto setting in South Korea.