In accordance with a recent report, South Korea has taken a big stride towards “enhancing the safety and “integrity” of its cryptocurrency market.
On July 4, the nation’s financial watchdog, the Financial Supervisory Service (FSS), officially announced the launch of a 24-hour monitoring system geared toward detecting and addressing dubious activities inside the crypto sector within the region.
In accordance with the report, this method is an element of a broader effort to implement South Korea’s first comprehensive crypto regulation later this month, marking a pivotal advancement within the nation’s approach to digital asset oversight.
Details of The 24-Hour Crypto Surveillance
Implementing these regulations comes at an important time, as the worldwide crypto market faces fluctuations and the increasing necessity for structured oversight becomes apparent.
Set to begin operation on July 19, coinciding with the enactment of recent crypto investor protection laws; the newly developed surveillance system represents a big technological upgrade in market monitoring.
Developed in collaboration with local exchanges, this method goals to sift through transaction data to flag and investigate abnormal activities.
In accordance with the report, by adopting advanced analytic models and indicators much like those utilized by Korea Exchange (KRX), the FSS goals to be certain that the system is each “efficient and effective” in curbing potential frauds and manipulations available in the market.
The FSS noted:
We benchmarked KRX’s (Korea Exchange) criteria in extracting abnormal transactions and ready models and metric indicators through several simulations, which we expect will filter out abnormal transactions meticulously.
Moreover, this initiative is supported by the cooperation of major exchanges that handle 99.9% of the digital currency transactions in South Korea, showing a unified front within the fight against illegal activities within the sector.
These platforms have integrated the FSS’s recent criteria into their systems and established dedicated teams to monitor transactions constantly, highlighting the commitment to compliance and security.
South Korea’s Continous Regulation
This 24-hour surveillance system comes against the country’s continuous effort to accentuate its digital currency regulations.
In accordance with a recent report, the Digital Asset Exchange Alliance disclosed that regional exchanges will assess their altcoin listings to comply with upcoming investor protection laws effective July 19, reviewing 1,333 cryptocurrencies over the following six months, making immediate widespread delistings “unlikely.”
No matter this continuous regulation, the country still appears open to experimenting more with crypto. Yoon Jae-ok, leader of the People Power Party, recently proposed pro-crypto measures to draw voter support within the April elections, including endorsing initial exchange offerings (IEOs), corporate digital asset investments, and spot Bitcoin ETFs.
Nevertheless, the Korea Institute of Finance has expressed concerns that these ETFs could divert significant capital from critical domestic markets to the volatile crypto sector, potentially damaging local industries and financial stability.
The institute warns that embracing such ETFs could increase financial market risks and reduce economic efficiency.
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