SK FSC, FSS Unfair Virtual Asset Trade

On Jul. 8, SK FSC, SK FSS issued a plan to investigate unfair trades.

  • SK FSC, SK FSS announced the launch of investigations on unfair trades in the virtual asset market from Jul. 19, 2024, in tandem with the Virtual asset user protection act.
  • Follows SK FSC Dec. 2023 proposed lower statutes on virtual assets, see #194144.
  • Also follows SK FSS Jan. 2024 launched 2 bureaus for virtual assets, see #197654.
  • Follows SK FSC Mar. 2024 strengthened investigations on virtual assets, see #206388.
  • Investigations
  • SK FSC, SK FSS will classify cases, initiate investigations after identifying suspicious cases through reports from SK FSS reporting center and internal market monitoring.
  • Also through notification of abnormal trade review results by virtual asset exchanges.
  • Investigative methods include investigation and request for submission of ledgers, documents, objects, a request for submission of a statement, an exchange of Q&A.
  • As well as detention of ledgers, documents, and objects, along with an analysis of review documents submitted by exchanges, on-chain virtual asset trade data.
  • The authorities will cooperate with foreign supervisory authorities and overseas virtual asset exchanges, analyze the authenticity of digital computer accidents like hacking.
  • Once investigations are completed, SK FSC will decide on five-stage measures depending on the severity of violations after deliberation by the dedicated committee.
  • Effectiveness
  • The constant surveillance system by virtual asset exchanges, as well as the financial authorities' investigation system will be immediately activated from Jul. 19, 2024.

Regulators SK FSC
Entity Types B/D; Exch; MSB
Reference PR 7/8/2024
Functions Compliance; Exams; Financial; Fraud; Legal; Operations; Reporting
Countries South Korea
Products Cryptocurrency
Regions AP
Rule Type Final
Rule Date 7/8/2024
Effective Date 7/19/2024
Rule Id 218588
Linked to Rule :206388
Reg. Last Update 7/8/2024
Report Section International

Last substantive update on 07/10/2024