Subscribe for notification
Crypto

South Korea Enforces Strict Crypto Exchange Laws

On July 19, the South Korean watchdog implemented new regulations to safeguard user assets on cryptocurrency exchanges

The much-discussed new regulations from South Korea’s financial security regulator, intended to safeguard users who purchase and store crypto assets with virtual asset service providers (VASPs), were implemented on July 19.

According to a July 17 statement from South Korea’s Financial Services Commission (FSC), the “Virtual Asset User Protection Act” mandates that VASPs implement numerous measures to safeguard users’ crypto assets.

These include the requirement to maintain the customer’s crypto assets separate from the exchange’s assets, the requirement to keep customer deposits “safely kept in banks,” and the acquisition of insurance against hacking and malicious attacks against the user’s crypto assets.

In addition, VASPs must report any suspicious transactions to the regulator and maintain a certain level of due diligence to prevent money laundering on their platforms.

“VASPs are required to operate a surveillance system for suspicious transactions at all times and promptly notify the Financial Supervisory Service (FSS) of any suspicious trading activities,” it stated.

South Korea’s Financial Services Commission stated that the laws will take effect from July 19 | Source, FSC

“Those who are discovered to have engaged in unfair trading activities may be subject to criminal punishment or penalty surcharge after investigations by the financial and investigative authorities,” it further stated.

Concerns among South Korean cryptocurrency exchanges
South Korean crypto exchanges have recently expressed apprehension that the regulations would necessitate the simultaneous delisting a significant number of tokens.

According to the Digital Asset Exchange Alliance (DAXA), the likelihood of a mass delisting occurring simultaneously is low, as a group of 20 South Korean crypto exchanges will evaluate a total of 1,333 cryptocurrencies over the next six months as part of the new crypto user protection laws, as reported by Cointelegraph on July 3.

In the interim, the People’s Power Party, the ruling party of South Korea, officially suggested that implementing the country’s tax on crypto trading profits be postponed.

The party submitted the proposition on July 12 and observed that the current sentiment toward crypto assets was deteriorating. The description indicated that imposing taxes on virtual assets at an accelerated pace is “not recommended at this time.”

James Emmanuel

James is a Computer Science student with a robust foundation in tech and a skilled DevOps engineer. His technical expertise extends to his role as a news reporter at Protechbro, where he specializes in crafting well-informed, technical content that highlights the latest trends and innovations in technology.

Disqus Comments Loading...

Recent Posts

Hackers Breach Tate’s Online ‘University,’ Steal Data

Hackers have infiltrated an online course that was established by Andrew Tate, a self-described misogynist and purported influencer The compromise…

4 hours ago

Apple Builds Conversational Siri with LLMs

Apple is reportedly working on an enhanced version of Siri, incorporating large language models (LLMs) to create a more conversational…

4 hours ago

YouTube Shorts Unveils AI Video Backgrounds

Thursday was the day that YouTube announced that its Dream Screen feature for Shorts now allows users to construct movie…

4 hours ago

Marissa Mayer Pitches Ad-backed AI Chatbot Model

Marissa Mayer proposes a business model for AI chatbots funded by advertising, highlighting potential opportunities for monetization Marissa Mayer possesses…

4 hours ago

Palo Alto Networks Warns of Firewall Breaches

By exploiting two new zero-day vulnerabilities discovered in widely used software developed by cybersecurity behemoth Palo Alto Networks, malicious hackers…

4 hours ago

Wiz Buys Dazz for $450M

Wiz, a cybersecurity company that has garnered significant attention, is acquiring a substantial amount of cloud security technology in order…

5 hours ago