The cryptocurrency market in South Korea continues to transform under the weight of rising regulatory pressures. Major cryptobours such as Upbit have moved to the or list this week warn specific digital assets that they considered high risk for investors.
The trend, as local reporters note, has seemingly manifested itself ignited the growing level of intervention by financial regulators in the operations of crypto service providers. Last week, the Korean Financial Intelligence Unit (FIU) reportedly contacted 33 crypto trading platforms to warn that it would conduct a field consultation by September 24.
The aim of these consultations is to verify whether or not companies are complying requirements laid down by the Act on Special Financial Transactionswhich entered into force in March this year.
Kbit ruled out Maro, Paycoin, Observer, Solve.Care and Quiztok last week and issued a warning on its English website about six assets on June 11, launching a weekly review process that will end with a final decision on removing the list. As the Korean Herald notes, the initial elimination caused coin prices to fall, with typical losses of 50-70%. In addition to the investment warnings published in English, Upbit’s new investment warnings are said to be extended to 25 different assets, which is about 14% of the coins listed on the platform.
In addition to Upbit, a reported total 11 of 20 stock exchanges received a security management system certificate similar steps were taken, and the Korean Financial Supervision Service also contacted several exchanges this week to request details of decommissioned or suspended assets.
In addition to the agencies’ direct communication with stock exchanges, the Korean Financial Services Commission (FSC), which oversees the cryptocurrency market, has created five new working groups, each tasked with specific tasks related to the implementation of the new Korean regulatory directive. on registration or cooperation with the National Assembly only after the adoption of measures aimed at improving the cryptocurrency ecosystem in the country.
The assigned groups’ roles are listed in their nomenclature: Daily Situation Group, Reporting and Response Group, On-the-Spot Consulting Group, Group Market Group and System Improvement Group. Under the auspices of the FIU, the groups will work with the Anti-Money Laundering Authority, the Financial Supervisory Authority, the Korea Exchange Securities Market, the Korea Securities Depository, the Korea Federation of Banks and Koscom.
Earlier this week, Cointelegraph said it would require a new FSC policy banks classify all cryptobore clients as “high risk”. The Agency also clarified its plan to ensure that authorization crypto-exchanges perform strong transaction monitoring and adhere to strict user ID requirements. After the deadline of 24 September, financial intelligence officers will be in charge of monitoring the business activities of the cryptobourse for a period of three months.