Korean Authorities Reveal Plan to Investigate Crypto Exchanges for Fraud

South Korea’s Financial Supervisory Service (FSS) will inspect cryptocurrency exchanges to identify illegal practices following the stricter Virtual Asset Users Protection Act.

The review, the first since the July implementation of the new regulations, aims to ensure compliance and safeguard assets. The FSS will initially target two exchanges flagged for suspicious activity and expand its scrutiny if needed.

Severe penalties, including life imprisonment for illegal profits over 5 billion won ($3.7 million), will be enforced. The FSS also plans to revise regulations based on inspection findings to enhance market order.

Clever Robot News Desk 6^th September 2024