Regulation of Cryptocurrency Exchanges is Increasing in South Korea.

The Financial Supervisory Service of South Korea is Paying Attention to Crypto Markets

South Korea's Financial Supervisory Service has decided to tighten its supervision process in the crypto market following an error at the Bithumb exchange, which resulted in some users being granted billions of dollars in Bitcoin (BTC) credits.

The regulatory authority will investigate high-risk practices such as large-scale price manipulation, trading connected to suspended deposit and withdrawal operations, and speculative trading plans originating from social media sources. During these investigations, artificial intelligence (AI) tools will be used to detect suspicious trading activities in real-time.

New Regulations and Penal Measures on the Way

Regulators will impose penal sanctions for information technology (IT) incidents, increase the security responsibilities of senior executives, and prepare more comprehensive regulations within the framework of the Fundamental Digital Asset Law that President Lee Jae-myung will implement to prevent poor financial practices.