Regulation
South Korea Toughens Cryptocurrency Rules, Targeting Fraud, Stability
South Korea is taking a more rigorous approach to regulating the digital asset market. To improve investor safety, authorities are stepping up efforts to force local cryptocurrency exchanges to eliminate fraudulent practices.
This push for tighter controls comes ahead of new legislation on digital assets that will be implemented later this month, on July 19. Financial Supervision Service (FSS) is taking a proactive stance, announcing that it will closely monitor atypical Bitcoin transactions to identify potential warning signs.
Exchanges are strongly encouraged to actively participate by submitting data and information to the system to ensure compliance with the upcoming regulations. According to the FSS statement, transactions that significantly deviate from the norm, characterized by high volumes, unusual price ranges, large amounts involved, or suspiciously slow execution times, will be closely scrutinized. This intense monitoring aims to uncover accounts linked to “alleged” suspicious activity.
South Korean Won Becomes World’s Most Traded Cryptocurrency
South Korean won (KRW) accounted for $456 billion in cryptocurrency trades in Q1 2024
South Koreans play a significant role in supporting the Bitcoin sector. The country boasts a significant cryptocurrency-enthusiastic population and the Korean won has recently overcome the US dollar as the preferred currency for buying and selling digital assets.
However, it is important to note that participation remains concentrated within a specific demographic. Less than 10% of the population actually engages in cryptocurrency trading, and a large portion of this activity involves smaller, more volatile altcoins rather than the dominant Bitcoin.
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