South Korea is intensifying its efforts to combat cryptocurrency fraud with the impending enforcement of a new digital asset legislation. The nation's financial regulatory body, the Financial Supervisory Service (FSS), is implementing a comprehensive surveillance mechanism to eradicate deceptive crypto trading activities within domestic exchanges. This initiative forms part of a larger campaign aimed at bolstering safeguards for investors.

As reported by Bloomberg, the Financial Supervisory Service (FSS) disclosed plans to establish a monitoring system designed to identify suspicious trading behaviors in the crypto market. The FSS has called upon crypto exchanges to furnish the necessary data and details to facilitate compliance with the regulations set to go live on July 19.

In response to the stricter regulatory environment, exchanges are mandated to enhance their surveillance capabilities to conform with the stringent oversight changes. The objective is to uphold market integrity and safeguard investors through real-time trading analysis and heightened investor protections. This move signifies South Korea's proactive stance in cracking down on illicit activities in the cryptocurrency sector.