South Korean regulators are going to look into “unfair crypto transactions” on a “large scale”


The financial authorities in South Korea are going to look into “unfair crypto deals” on a “full-scale” level.

According to Daehan Kyungjae, the Financial Services Commission (FSC) declared on July 7 that it will establish a “investigation system” that will commence operations on July 19.

This implies that the new system will roll out concurrently with the implementation of the Virtual Asset User Protection Act.

The Financial Supervisory Service (FSS), the nation’s other significant financial regulatory body, will collaborate with the FSC.

According to the organizations, they have “prepared” for the new act by collaborating to establish “a specialized organization” that will investigate what they refer to as “unfair virtual asset transactions.”

Regulatory authorities are referring to “price manipulation trading” and “crypto transactions made using concealed information” by this term.

The regulators will also target companies and individuals whom they suspect of “trading self-issued coins” for their own gain.

The regulators will analyze the data they receive from crypto exchanges and will also rely on reports submitted through the FSS’s new reporting center.

The FSC also stated that it would investigate transactions using its own monitoring systems. The organization has stated that it will employ data investigation inquiries, “on-site data seizures,” and IT “forensics” to assist in the identification of potential violators.

It also stated that it had “established a system of cooperation” with foreign crypto exchanges and overseas regulators.

The regulator also stated that it would investigate unusual “cross-border” transactions, as well as potential instances of “hacking” and “anonymous transactions.”

Additionally, the FSC stated that it would conduct an investigation into crypto operators who say that they have been the victims of cyber attacks in order to verify the accuracy of their statements.

The FSC stated that it would impose “fines, warnings, and cautions” on convicted offenders.

In more severe instances, individuals who are found to be engaging in “unfair crypto trading practices” may be sentenced to imprisonment for a period exceeding one year.

Convicted offenders will be required to pay “three to five times” the amount they earned using “unfair” methods under a “system of penalties” that the regulator will implement.

More severe offenders may be subject to prison sentences that extend to five years. Additionally, “unfair traders” may receive life sentences in the most severe instances.

According to a representative of the Financial Services Commission, the new “investigation system” will be operational as of July 19. The spokesperson arrived at the following conclusion:

“The financial regulatory authorities will employ all available investigative tools and resources.” In the virtual asset market, we will implement a trading system that is both equitable and transparent.

Also Read: Monero now has more payments than Bitcoin for the first time on the site

Leave A Reply

Your email address will not be published.