South Korea Strengthens Crypto Fraud Detection

South Korea Enhances Crypto Fraud Surveillance
South Korea is intensifying its efforts to combat cryptocurrency fraud through the introduction of a real-time monitoring system by the Financial Supervisory Service (FSS). This advanced system, operational from July 19, 2024, aims to track suspicious transactions, ensuring market integrity and investor protection. Developed in collaboration with local exchanges, the system provides 24/7 oversight to promptly identify irregularities, fraud, and manipulation. Additionally, a dedicated data transmission line facilitates seamless reporting between exchanges and the FSS.
The launch coincides with the implementation of South Korea’s first crypto investor protection law, the Virtual Asset User Protection Act. The new regulation mandates that all crypto exchanges integrate this monitoring system, enhancing transparency and security in the trading environment. This move is expected to bolster South Korea’s position in the global crypto market by creating a safer and more regulated trading space, deterring illicit activities, and ensuring cooperation between regulators and market players.