South Korea’s Financial Supervisory Service (FSS) has introduced a “continuous monitoring system” to track suspicious cryptocurrency transactions on exchanges. In a notice dated July 4, the FSS announced its collaboration with South Korean digital asset exchanges to establish a mechanism for ongoing surveillance of abnormal transactions. This system is set to be operational from July 19, coinciding with the enforcement of the Virtual Asset User Protection Act, which was passed in 2023 to regulate unfair trade practices and safeguard investors.
According to the FSS, major cryptocurrency exchanges covered by the law have implemented a system that enables the regulator to identify abnormal transactions, encompassing approximately 99.9% of the country’s trading volume. Once detected, these exchanges will promptly notify the FSS of suspicious transactions through a dedicated data transmission line. Such transactions include those aimed at market manipulation or other illicit trading activities.
Source: Financial Supervisory Service