South Korea's Financial Supervisory Authority to check cryptocurrency exchanges

South Korea's financial regulator is launching an audit of virtual asset exchanges to identify suspicious or illegal transactions.

The FSS will ensure order in the market by applying severe sanctions for illegal activities identified during inspections. If necessary, the regulator will also initiate a legislative review to eliminate gaps in the system.

During the inspection process, the Financial Supervisory Service will track suspicious transactions and monitor compliance with regulatory requirements by cryptocurrency exchanges and related companies.

South Korea's Financial Services Commission (FSC) said that the FSS has the authority to inspect virtual asset service providers (VASPs) to ensure that they fulfill their responsibilities to protect users. The FSC can sanction violators by issuing corrective orders, suspending operations, or imposing administrative fines.

The leading cryptocurrency exchanges in South Korea include Upbit, Bithumb, and Coinone. VASP. Platforms should conduct thorough checks to prevent money laundering and report suspicious transactions to the regulator.