Under a new amendment to South Korea's Virtual Asset User Protection Act, crypto exchanges can now suspend transactions legally. The provision is designed to combat hacking, money laundering, and fraud. It allows exchanges to act quickly without notifying users in advance.
South Korea’s first law to protect cryptocurrency users came into effect on July 19, 2024. It comes as part of a strategy to expand the industry while ensuring security. In addition, in recent months, South Korean lawmakers have implemented a number of regulations to mitigate growing threats and unfair trade practices in the crypto industry.
To protect investors, the Financial Services Commission (FSC) has legalized the Digital Asset Protection Fund to protect cryptocurrencies, especially in the event of exchange failures.
In the latest amendment to the User Protection Act, the FSS has emphasized the importance of prior notice. The regulator’s position is that exchanges should only apply transaction blocks without prior notice in emergency situations.
South Korea's largest crypto exchange, Upbit , is facing regulatory pressure over suspicion of violating KYC regulations. During the exchange's renewal license review, the Financial Intelligence Unit (FIU) of South Korea found that Upbit registered approximately 600,000 clients without proper customer verification procedures. This violation could result in fines of up to 100 million won, potentially complicating the license renewal.
South Korea's Largest Cryptocurrency Exchange Upbit is facing regulatory pressure over allegations of KYC violations. During an audit of the exchange's license renewal, South Korea's Financial Intelligence Unit (FIU) found that Upbit registered about 600 customers without proper customer verification procedures. This violation could result in fines of up to 000 million won, which could make it difficult to renew its license.
