South Korea Grants Cryptocurrency Exchanges the Right to Block Transactions to Combat Fraud
Date: 2024-11-19 Author: Gabriel Deangelo Categories: IN WORLD
The South Korean authorities have strengthened measures to protect users of virtual assets by adopting new amendments to the law. Now cryptocurrency platforms can independently block transactions that seem suspicious, even without notifying customers in advance. At the same time, exchanges are required to inform users about such actions after they have been committed.
The Financial Supervisory Service of the Republic of Korea (FSS) noted that these changes are aimed at combating illegal financial transactions, fraudulent schemes, and threats from cybercriminals. However, the FSS emphasized that cryptocurrency companies must approach such actions responsibly and avoid abuse.
The regulators urged exchanges to give priority to informing users before blocking transactions, if the situation allows. However, in an urgent situation, exchanges can act quickly to prevent the threat.
Earlier, FSS head Lee Bok-hyun held a meeting with representatives of 16 cryptocurrency companies in the country. He reminded operators of the serious consequences for participating in illegal transactions, emphasizing that the regulator will strictly monitor compliance with the new rules.
These measures demonstrate South Korea's efforts to strengthen trust in the cryptocurrency market and improve the security of financial transactions in the virtual environment.
