Unfair Crypto Transactions Will Be Probed By South Korean Regulators

South Korean financial regulators are set to launch thorough investigations into what they term as unfair crypto transactions. According to reports by Daehan Kyungjae, the Financial Services Commission (FSC) announced on July 7th the establishment of a new investigation system, slated to commence operations on July 19th. This coincides with the enforcement date of the Virtual Asset User Protection Act.

Cooperation Is Key

The FSC, in collaboration with the Financial Supervisory Service (FSS), has prepared for the new regulations by forming a specialized entity to probe unfair virtual asset transactions. These transactions involve activities such as trading based on undisclosed information and price manipulation.

Additionally, regulators will scrutinize entities suspected of trading self-issued coins for personal gain. They will gather data by crypto exchanges and utilize a new reporting center by the FSS. The FSC emphasized its intention to work closely with international counterparts and foreign exchanges to investigate suspicious cross-border transactions, hacking incidents, and anonymous dealings.

Fairness And Transparency

The regulatory measures aim to bolster investor protection under the upcoming digital-asset law. Offenders found guilty of unfair trading practices could face fines, warnings, and in severe cases, imprisonment ranging between one year to potentially life sentences. The FSC plans to enforce these measures rigorously, emphasizing the establishment of a fair and transparent trading environment in the virtual assets market.

Establishing a fair and transparent trading environment in the digital assets market is crucial to ensure investor confidence, mitigate risks of market manipulation and fraud, and foster sustainable growth of the digital asset industry. It enhances regulatory oversight, protects consumer interests, and supports broader economic stability.