In a significant regulatory shift, the Financial Services Commission of South Korea has announced a new mandate for domestic crypto exchanges, requiring them to adopt a more rigorous asset-matching system by the end of May 2023. The document provides a justification for the fact that this initiative is part of a broader effort to improve compliance and reliability in the rapidly evolving cryptocurrency market.
New Regulation Overview
The new regulation will change the asset reconciliation process from the current 24-hour cycles to a streamlined 5-minute asset-matching system. This move is designed to address previous issues identified with existing tracking systems, ensuring that exchanges can maintain accurate records of their assets in real-time.
Reporting and Compliance Requirements
Under the new rules, exchanges will be required to report their asset-matching results on a daily basis. Additionally, they will undergo monthly independent reviews to ensure compliance with the new standards. This marks a significant tightening of operational rules within the crypto sector, reflecting the government's commitment to enhancing oversight and protecting investors.
Recently, the Financial Services Commission of South Korea implemented new regulations for crypto exchanges, emphasizing compliance. In a related development, the FSC had previously announced plans for an AI-driven market monitoring system to enhance market integrity. For more details, see AI-driven monitoring.
