According to a recent report, South Korea has taken an important step to “improve the security and “integrity” of its cryptocurrency market.
On July 4, the nation’s financial watchdog, the Financial Supervisory Service (FSS), officially announced the launch of a 24-hour monitoring program aimed at detecting and dealing with questionable activities within the crypto sector in the region.
According to the report, the plan is part of a broader effort to implement South Korea’s first comprehensive crypto law later this month, marking a significant development in the nation’s approach to overseeing digital assets.
24 Hour Crypto Surveillance Details
The implementation of these rules comes at an important time, as the global crypto market is experiencing volatility and the increasing need for systematic oversight is becoming apparent.
It is scheduled to go into effect on July 19, which coincides with the enactment of new rules to protect crypto investors; the newly developed surveillance system represents a significant technological advance in market surveillance.
Developed in collaboration with local exchanges, this system aims to filter transaction data to flag and investigate unusual activities.
According to the report, by adopting advanced analytical models and indicators similar to those used by the Korea Exchange (KRX), the FSS aims to ensure that the system is both “effective and efficient” in preventing potential fraud and manipulation in the market.
The FSS noted:
We benchmarked the KRX (Korea Exchange) criteria for removing unusual transactions with adjusted models and metric indicators through several simulations, which we expect will filter out unusual transactions carefully.
In addition, this initiative is supported by the cooperation of major exchanges that handle 99.9% of digital currency in South Korea, showing a united side in the fight against illegal activities in this sector.
These platforms have incorporated the new FSS criteria into their systems and established dedicated teams to continuously monitor transactions, highlighting a commitment to compliance and security.
Continuing Regulation of South Korea
The 24-hour surveillance system is in opposition to the country’s ongoing effort to tighten its digital currency regulations.
According to a recent report, the Digital Asset Exchange Alliance revealed that regional exchanges will review their altcoin listings to comply with upcoming investor protection rules that come into effect on July 19, reviewing 1,333 cryptocurrencies over the next six months, making a widespread delisting “impossible.” .”
Regardless of this ongoing regulation, the country still seems open to experimenting more with crypto. Yoon Jae-ok, the leader of the People Power Party, recently proposed pro-crypto measures to attract voter support in the April election, including authorizing initial exchange offerings (IEOs), digital asset investments, and Bitcoins ETF.
However, the Korea Institute of Finance has expressed concern that these ETFs could divert large sums of money from sensitive domestic markets to the volatile crypto sector, potentially harming local industries and financial stability.
The agency warns that adopting such ETFs may increase financial market risk and reduce economic efficiency.
The featured image was created with DALL-E, a Chart from TradingView
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