Financial Supervisory Service (FSS) has taken a firm stand
against illegal cryptocurrency transactions, urging firms in the sector to
adhere strictly to regulations under the new law, TheKoreTimes reported.
This warning followed the enactment of the Virtual
Asset Users Protection Act, which introduced severe penalties, including life
imprisonment, for financial gains exceeding 5 billion won ($3.76 million)
through illegal transactions. As the FSS intensifies its oversight, cryptocurrency
exchanges and wallet providers are now under increased scrutiny to ensure
market integrity.
Crypto Firms Face Heightened Scrutiny
Lee Bok-hyun, the Head of the FSS, emphasized that
protecting users remains a top priority as the new law is enforced. Lee
stressed that any suspicion of illegal activities, such as sudden fluctuations
in newly listed coins or unconfirmed rumors, would trigger comprehensive
investigations and stern punitive actions.
The meeting, which included the chief executives of 12
cryptocurrency exchanges and four wallet providers, highlighted the regulator’s
intent to maintain stringent oversight. Lee reiterated that enforcement under
the principle of zero tolerance would be prioritized, using all investigative
resources available.
The FSS recently announced plans to inspect two
cryptocurrency exchanges where “unusual cases” had been reported,
along with routine checks on three additional exchanges and one wallet
provider. This move marks the beginning of rigorous oversight aimed at
preventing illicit activities in the virtual asset space.
Lee acknowledged the challenges posed by the
implementation of new regulations but praised the industry for its role in
successfully enacting the Virtual Asset Users Protection Act.
Second-Phase Revisions in Focus
Lee also indicated that the government will work
closely with businesses and relevant agencies to revise the regulations. These
revisions aim to shape the direction of virtual asset market oversight,
emphasizing the importance of regulatory cooperation to enhance market
trustworthiness.
The regulatory landscape for virtual assets is
tightening, with authorities making it clear that misconduct will face serious
repercussions. As the sector grows, the regulators are focusing on compliance
and user protection.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
