South Korea To Inspect Exchanges

South Korea’s Financial Supervisory Service (FSS) will start inspecting virtual asset exchanges for illegal activities and suspicious transactions, according to local reports. The FSS will enforce strict punishments for violations and may propose regulatory changes if needed to address system gaps.

These inspections aim to ensure compliance with South Korea’s “Virtual Asset User Protection Act,” which came into effect on July 19. The law focuses on safeguarding crypto investors by requiring exchanges to insure against hacks, separate customer and exchange assets, and follow anti-money laundering regulations. Major exchanges like Upbit, Bithumb, and Coinone must comply with these rules and report suspicious activity.