South Korea’s FSS Gets Tough on Crypto Crime

• South Korea has adopted a zero-tolerance principle to tackle the increasing crypto hacks and illegal practices.
• The FSS Governor Lee Bok-hyun emphasizes the need for companies to comply with regulations.
• The regulators will closely monitor crypto fluctuations, prioritizing user protection.

The South Korean Financial Supervisory Service (FSS) announced plans to implement strict regulations for the crypto industry.

FSS Governor Lee Bok-hyun introduced a zero-tolerance policy to combat unfair crypto trading practices. This initiative aims to protect investors and reduce illegal activities in the market.

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In a meeting with industry leaders and experts, Governor Lee Bok-hyun warned of growing threats in the crypto market and stressed the need for companies to comply with regulations. He said the regulator would monitor market fluctuations closely, particularly sudden price swings of new tokens.

Under the zero-tolerance policy, the FSS will take action against rule-breakers when they identify suspicious transactions or spam. He added: 

“The financial government will continue to enforce the Virtual Asset Users Act by carrying out its oversight, review and inspection duties, prioritizing user protection.”

South Korea’s Tough Stance on Crypto Crime

The FSS’s new regulatory policy follows South Korea’s recent enactment of the Virtual Asset Users Protection Act . South Korea passed the act to fight the rise in cryptocurrency hacks and illegal activities. This strict law sets harsh penalties for individuals involved in illegal crypto transactions. Those involved in illegal transactions exceeding 5 billion won ($3.75 million) could face life imprisonment.

In recent months, South Korea became known for its commitment to strengthening crypto regulations and ensuring user protection. The country’s tax implementation strategies and scrutiny of crypto exchanges aligns with the nation’s decision for a strong crypto oversight.

Read also: South Korea’s FSS Initiates On-Site Inspections of Crypto Exchanges

The FSS Chief thanked the industry for its cooperation with regulators, recognizing that their joint efforts have lessened the difficulties of regulatory hurdles. This highlights the importance of open communication and cooperation between regulatory bodies and the industry in managing complex regulations.