Financial Authorities Conduct On-Site Inspections of Cryptocurrency Exchanges
CryptoNewsTerminal Staff22 Aug, 2024
Financial Authorities Conduct On-Site Inspections of Cryptocurrency Exchanges
Financial authorities in South Korea, including the Financial Services Commission and the Financial Supervisory Service, have conducted on-site inspections of cryptocurrency exchanges to monitor their transaction monitoring systems. The inspections, which were prompted by the recent enforcement of the Virtual Asset Utilization and Protection Act, aimed to ensure that exchanges are effectively detecting and responding to abnormal transactions promptly. During the inspections, officials visited exchanges such as Upbit and Bithumb to assess their systems for extracting suspicious transactions based on variables like price and volume fluctuations. While each exchange had its own system in place, the authorities noted the need for further enhancements to adapt to evolving transaction patterns and potential new forms of market manipulation. The inspections highlight the ongoing efforts by financial regulators to supervise the cryptocurrency industry and protect investors from illicit activities. They also emphasize the importance of robust transaction monitoring systems for exchanges to comply with regulatory requirements and maintain the integrity of the market.
