South Korea to Collaborate with Exchanges on Cryptocurrency Monitoring System: A New Leap in Regulatory Control

South Korean Government Unveils System to Monitor Crypto Transactions

The South Korean government has announced the introduction of a new surveillance system to monitor cryptocurrency transactions in partnership with local exchanges. The system will operate 24/7 and will enable the detection of suspicious and illicit operations.

Key Points:

  • The new system will begin operating on July 19, in partnership with local exchanges.
  • The system will monitor transactions 24/7, and exchanges will report suspicious activities to authorities.
  • The measure is part of the new crypto regulations that will come into force in the coming days.

New Monitoring Tool in South Korea

The new system was established jointly with cryptocurrency exchanges and will filter out abnormal transactions meticulously. Major local platforms process around 99% of crypto transactions in the country, so these are the entities that must monitor operations.

Enforcement by Platforms

Each exchange must consist of a team that is dedicated exclusively to monitoring suspicious transactions, which carries out the necessary investigation with data blockchain to determine whether there is a potential crime.

Very Demanding Legal Frameworks

South Korea has one of the most active crypto markets in the world, but also some of the most rigid and demanding regulations in the industry internationally. The country’s new rules also require domestic companies that issue or hold cryptocurrencies to provide detailed disclosures about their assets.

Regulation

The new crypto regulations that will come into force in the coming days will introduce harsher penalties for actors who commit crimes related to cryptocurrencies, including the possibility of a life sentence.

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ETFs

Regarding ETFs Bitcoin, the Korea Institute of Finance does not consider it a good idea for these products to reach the local market, since they could bring more problems than benefits to the nation’s economy.

WARNING

This is an informative article. This is not a recommendation or endorsement of any particular investment. Investments in cryptoassets are not regulated in some countries and may not be appropriate for retail investors, as the total amount invested could be lost. Check the laws of your country before investing.

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