According to PANews, South Korean regulatory authorities are intensifying their scrutiny of local cryptocurrency exchanges, demanding the eradication of suspicious transactions. This move is part of the efforts to strengthen investor protection under the new digital asset law that will come into effect later this month. The country's Financial Supervisory Service (FSS) stated in a declaration on Thursday that it is establishing a system to monitor abnormal cryptocurrency trading activities. The FSS suggested that exchanges input data and information into this system to ensure compliance with the legislation effective from July 19. The statement highlighted that danger signals include trading volumes and prices exceeding normal ranges, excessively large trading volumes, and unusually slow execution speeds. One of the objectives of this measure is to identify accounts associated with 'suspicious' activities.
Matt Younghoon Mok, a senior foreign attorney and partner at Lee & Ko law firm in Seoul, stated that the guidelines of the Korean Financial Supervisory Institute could pose a significant challenge to altcoins that are unable to quickly meet regulatory requirements. Korean exchanges have begun reviewing the listing status of over 1,000 altcoins within the next six months to ensure their compliance with the 'Virtual Asset User Protection Act'. An industry body stated on Tuesday that the possibility of a 'massive' delisting of altcoins is not high, refuting the idea that the bill could quickly kill off some of the country's highly speculative token trading.