South Korean authorities require crypto exchanges to operate 24 hours a day to report suspicious transactions

South Korea’s “Virtual Asset User Protection Act” is expected to officially take effect on July 19. According to Bloomberg, in response to the new law, the country’s regulatory authorities are putting pressure on local cryptocurrency exchanges to report suspicious transactions.

South Korea’s Financial Supervisory Service (FSS) said in a statement on Thursday that the agency is establishing a 24-hour system to monitor abnormal cryptocurrency trading activities.

Korea FSS stated that the new system will be launched on July 19, and recommended that trading platforms report suspicious transaction data and information through the system. One of the goals is to uncover accounts related to "suspicious" activities. The statement mentioned that any "transactions outside the normal trading volume and price range", "large transactions" and "abnormally slow execution speed" may be regarded as suspicious transactions.

In addition, South Korean authorities also recommended that exchanges form dedicated teams within their organizations to monitor suspicious transactions and provide guidance on how to detect illegal behavior in transactions. The agency pointed out that illegal activities in the cryptocurrency field include unfair transactions using undisclosed information, price manipulation and falsification of circulation data.

South Korean investors are the mainstay of the cryptocurrency market. About 10% of the Korean population has been exposed to cryptocurrency, among which small altcoins with higher risks are the most popular.

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