South Korea’s Financial Supervisory Service (FSS) has announced the launch of on-site inspections of crypto asset exchanges, starting with Bithumb. The inspections will commence after the Chuseok holiday, marking the regulator’s first in-depth examination of virtual asset service providers (VASPs) under the new legal framework.
Inspections Begin
South Korea’s Financial Supervisory Service (FSS) will begin inspections of crypto asset exchanges after the Chuseok holiday. The first platform to be reviewed is Bithumb.
Focus on Law Compliance
The inspection will primarily focus on Bithumb’s compliance with the recently established Virtual Asset User Protection Act. This regulation aims to improve the safety and transparency of the crypto market in South Korea by outlining several rules that VASPs must adhere to.
Evaluating Security Measures
The FSS will evaluate Bithumb’s adherence to these regulations, paying particular attention to its efforts to safeguard customer funds and ensure transparent operations. Additionally, the measures for fraud prevention and customer protection will be assessed.
These inspections mark the first step in efforts to ensure security and transparency in South Korea's crypto market under the new legal framework.
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