South Korea has intensified its efforts to increase oversight in the cryptocurrency market to enhance transparency and protect investors. The Financial Intelligence Unit (FIU) has started examining several overseas cryptocurrency platforms operating unlawfully in the country.
Strict Oversight Initiated for Unregistered Platforms
The FIU announced that platforms such as BitMEX, KuCoin, CoinW, Bitunix, and KCEX have been providing services to South Korean investors without proper registration. It was reported that these platforms have not complied with local regulations and have operated without completing the necessary registration process. Following this discovery, the FIU has initiated an official review of these platforms. The companies are reaching local investors through Korean-language websites and conducting operations targeting local investors by offering marketing services and user support. Discussions among regulatory bodies are ongoing to prevent such non-compliant activities.
Central Bank Prepares for Digital Currency Testing
The Bank of Korea announced that it does not deem the idea of creating a digital asset reserve suitable due to volatility and financial risks. Instead, it has disclosed its focus on developing a central bank digital currency (CBDC). The trial program, planned to commence in April, is expected to last approximately three months. This trial is viewed as a significant step towards strengthening the country’s digital payment infrastructure. The central bank will test its technological infrastructure during this process and analyze potential risks.
Developing a Broader Regulatory Framework
South Korea is in the process of establishing a more comprehensive regulatory framework to monitor the growth of the cryptocurrency market and protect investors. Stricter rules, particularly in the fight against money laundering, have been implemented. These measures are expected to make the sector safer and more transparent.
The tightening of regulatory measures in South Korea aims to create a safer and more transparent environment for cryptocurrency investors. The country is also exploring the introduction of digital currencies to further enhance its digital economy.
