South Korea's Financial Regulator Tightens Measures Against Illegal Activities on Crypto Exchanges

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. Laws and Regulations
  2. Cryptocurrency Exchanges in South Korea
  3. Current Market Situation


    4. South Korea’s Financial Supervisory Service (FSS) announced plans to crack down on cryptocurrency exchanges across the country. This marks the first big move under the new Virtual Asset Users Protection Act.

    Laws and Regulations

    This law packs a serious punch, including life sentences for those who illegally rake in more than 5 billion won (about $3.7 million). South Korea’s exchanges collectively represent about 5% of the global cryptocurrency trading volume.

    The FSS will establish market order through stern punishment against illegal activities that may be identified in the process of its inspection, and will push for the revision of regulations if necessary by identifying the areas in the system where improvements are needed.

    Cryptocurrency Exchanges in South Korea

    Altogether, the country hosts four major won-based exchanges: Upbit, Bithumb, Coinone, and Korbit. Beyond those, the FSS will also be scrutinizing three more exchanges and one cryptocurrency wallet provider. Upbit controls roughly 83% of the total trading volume, with Bithumb at second place with 13%, while Coinone and Korbit each hold around 1.1%.

    Current Market Situation

    The surge in activity is partly due to the renewed interest in crypto after the recent changes in regulations. High trading volumes in South Korea are largely driven by retail investors, who are known for their active trading strategies and interest in altcoins. In contrast, markets like the U.S. see more institutional trading. The total daily trading volume across all cryptocurrency exchanges is approximately $20 billion. Binance leads with a daily trading volume of about $7.29 billion. Binance has reported holding approximately $92.7 billion in total assets across its platform, including various cryptocurrencies and stablecoins. Coinbase’s reserves are estimated at around $30 billion, primarily in Bitcoin and Ethereum.

    The tighter controls on cryptocurrency exchanges in South Korea aim to ensure user safety and prevent illegal activities. The new law reflects the regulators' serious intentions to maintain order in the cryptocurrency market.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Chainlink and LG CNS Join Forces to Enhance Digital Asset Infrastructure in South Korea

Chainlink and LG CNS have announced a partnership to enhance oracle and crosschain infrastructure for South Korea's financial institutions.

user avatarRajesh Kumar

HSBC Introduces RedCoin for Consumer Payments

HSBC has launched RedCoin, a stablecoin backed by the Hong Kong dollar, for consumer payments through its PayMe app.

user avatarLucas Weissmann

CME Group Achieves Record Revenue and Trading Volume in Q3

CME Group reports a remarkable 13% increase in Q3 revenue, reaching $17.373 billion, with an average daily trading volume of 294 million contracts.

user avatarFilippo Romano

Zcash Investment Product Sees Significant Inflows

Demand for the Zcash investment product tracked under ticker ZCSH surged on October 21, marking a notable recovery after earlier withdrawals.

user avatarEmily Carter

BTCPay Server Documentation Guides Merchants on Payment Integration

BTCPay Server provides documentation for merchants on how to connect its payment system to WooCommerce, emphasizing the importance of maintaining all components.

user avatarTomas Novak

Colombian Crypto Broker Sentenced to 160 Months for Money Laundering

Colombian crypto broker Leonardo de Jesus Zuluaga Duque sentenced to 160 months for laundering $145 million in drug proceeds through cryptocurrency.

user avatarKaterina Papadopoulou

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.