Nikolas Sargeant
South Korean financial regulators are set to escalate their efforts against what they term "unfair crypto transactions." According to a report by Daehan Kyungjae, the Financial Services Commission (FSC) announced on July 7 the establishment of a new "investigation system," scheduled to commence operations on July 19. This coincides with the enforcement date of the Virtual Asset User Protection Act.
The FSC, in collaboration with the Financial Supervisory Service (FSS), has created a dedicated organization to investigate activities such as crypto transactions based on undisclosed information and price manipulation trading. The initiative will also target entities suspected of self-issuing coins for personal gain.
Regulator to Work With Overseas Counterparts
In addition to domestic measures, the FSC plans to extend its scrutiny to transactions using its own monitoring systems. It has also forged partnerships with overseas regulators and foreign crypto exchanges to enhance oversight. The regulator aims to investigate suspicious cross-border transactions, hacking incidents, and transactions made anonymously.
Biggest Crypto Offenders Could Face Life in Jail – Regulators
The FSC outlined penalties for offenders, ranging from fines and warnings to imprisonment exceeding one year for severe cases of unfair crypto trading practices. Offenders may face fines up to three to five times the illicit gains, with the possibility of up to five years' imprisonment for more egregious violations. In extreme cases, life sentences could be imposed.
A spokesperson from the Financial Services Commission emphasized the immediate activation of the new investigation system on July 19, stating, "The financial regulatory authorities are committed to employing all investigative tools and capabilities available to establish a fair and transparent trading system in the virtual assets market."
This comprehensive approach marks a significant step in South Korea's regulatory landscape concerning cryptocurrencies, aiming to curb illicit activities and ensure market integrity.
