In response to the Virtual Asset User Protection Act, the South Korean government is conducting real-time monitoring of the cryptocurrency market.

The Financial Supervisory Service in South Korea has announced that it is prepared to monitor suspicious activities in the cryptocurrency market 24 hours a day. According to its announcement, with the Virtual Asset User Protection Act set to take effect on July 19, virtual asset exchanges must continue to monitor abnormal transactions to prevent unfair trading practices in the virtual asset market.

24-Hour Monitoring System for Real-Time Reporting of Suspicious Transactions

According to The Block, the Financial Supervisory Service (FSS) of South Korea has developed a 24-hour monitoring system in collaboration with local exchanges to screen any suspicious activities in the cryptocurrency market. The major local exchanges that handle 99.9% of cryptocurrency transactions in South Korea have established monitoring systems based on the latest standards.

The FSS also recommends exchanges to form dedicated teams within their organizations to monitor suspicious transactions and provide guidelines on how to detect illicit activities in transactions through auditing information such as on-chain data. The agency highlighted that illicit activities in the cryptocurrency space include unfair trading using undisclosed token information, price manipulation, and falsification of circulation data.

A hotline has been established between exchanges and the FSS for immediate reporting of any violations.