The Korean regulator has developed a system for monitoring crypto transactions
Date: 2024-07-05 Author: Henry Casey Categories: IN WORLD
South Korea's Financial Supervisory Service (FSS) announced the launch of a real-time monitoring system for cryptocurrency transactions on local exchanges. This system will be aimed at monitoring suspicious activity and preventing fraud in the digital asset market. The system is expected to go live on July 19, coinciding with the entry into force of the new law on the protection of crypto investors.
The FSS press release states that from January to May of this year, the service developed a standardized reporting format for crypto exchanges on transactions. Based on this data, a system was built that makes it possible to distinguish unusual operations from many others. The measure is part of a broader effort to strengthen controls and security in the cryptocurrency market.
How it works?
FSS used the Korea Stock Exchange (KRX) criteria to identify anomalous transactions and prepared a number of proprietary monitoring metrics. Major local crypto exchanges, which account for 99.9% of digital asset transactions in the country, have already implemented their own monitoring systems based on the standards proposed by the agency.
FSS officials recommended that exchanges set up departments to monitor suspicious transactions and provide them with on-chain analysis methods. In addition, local exchanges have launched a hotline for reporting transactions that potentially violate local laws. This should strengthen control and improve the security of transactions with cryptocurrencies.
The future of regulation
Lawmakers are currently working on developing additional laws related to the regulation of stablecoins and institutional cryptocurrency trading. In February, local financial intelligence already planned to check crypto exchanges for licenses as part of strengthening the fight against money laundering.
The creation of a cryptocurrency transaction monitoring system in South Korea is an important step towards strengthening the security and transparency of the digital asset market. This initiative will not only protect investors but will also help prevent fraud and money laundering, which will ultimately contribute to the healthy development of the crypto industry in the country.
