Crypto exchanges subject to a new South Korean law have implemented a system allowing authorities to receive reports on suspicious transactions.
South Korea’s Financial Supervisory Service (FSS) has launched a “continuous monitoring system” for suspicious crypto transactions on exchanges.
In a July 4 notice, the FSS said it had worked with South Korean digital asset exchanges to establish a system for “constant monitoring of abnormal transactions.” The system’s implementation will occur on July 19, when the Virtual Asset User Protection Act — legislation passed in 2023 to regulate unfair trade practices and protect investors — goes into effect.
According to the FSS, major crypto exchanges subject to the law have established a system allowing the regulator to filter out abnormal transactions, covering roughly 99.9% of the country’s trading volume. Once identified, the exchange’s system will report suspicious transactions to the FSS through a dedicated data transmission line. These transactions will include those intended to manipulate the market or engage in other illegal trading.