The Financial Supervisory Service (FSS) of South Korea is inspecting bitcoin exchanges more often to find and stop illegal trades. This change is part of tighter rules put in place by the new Virtual Asset User Protection Act. These rules are meant to protect buyers and keep the market running smoothly.
The FSS will closely watch how virtual asset swaps work and punish those who break the law severely. This is to make sure that they follow the law. Anyone caught doing something illegal could face harsh punishments, such as legal consequences. People who steal more than 5 billion won (about $3.7 million) could get life sentences.
The inspector will focus on finding deals that look sketchy and following the rules that are meant to protect users’ money. The new law, which became law in July, includes a number of ways to keep buyers safe. For example, they could require exchanges to protect user assets against hacks and scams and keep customer funds separate from the platform’s business assets.
If the checks find holes in the system, the FSS will not only stop any questionable behavior, but they will also push for better rules. This extra supervision will have an effect on South Korea’s biggest platforms, such as Upbit, Bithumb, Coinone, and others. These companies already have to follow strict rules to stop money laundering and report any activities that seem fishy.
South Korea isn’t the only country that is making it harder for crypto sites to operate. Hong Kong and the UK are two other countries that have tightened rules on digital asset swaps in order to protect buyers and keep the market stable.
