According to Bloomberg, South Korean regulators are increasing pressure on local cryptocurrency exchanges to eradicate suspicious transactions. The Financial Supervisory Service of South Korea recently said that it is establishing a system to monitor abnormal cryptocurrency trading activities and recommends that exchanges enter data and information into the system to ensure compliance with legislation that came into effect on July 19. The statement pointed out that red flags include trading volumes and prices outside the normal range, excessive trading volume, and abnormally slow execution speed. One of the goals of this measure is to find accounts related to "suspicious" activities.
Matt Younghoon Mok, senior foreign attorney and partner at Lee & Ko in Seoul, said the Financial Supervisory Service's guidelines "may pose a significant challenge to altcoins that cannot quickly meet regulatory requirements." South Korean exchanges will begin reviewing the listing of more than 1,000 altcoins over the next six months to ensure they comply with the Virtual Asset User Protection Act.
