20 Korean Cryptocurrency Exchanges Will Be Under Full Inspection This Month

Key Points:

Because the reliability of virtual assets dropped significantly due to many harmful factors last year, this year’s test will likely be conducted with high intensity.

According to financial authorities on the 7th, the Financial Intelligence Unit (FIU) of the Financial Services Commission plans to examine virtual asset operators this month comprehensively.

About 20 exchanges in the coin market, including Foblegate, Gdac, and Flybit, were selected as targets for this test. Coinmarket exchanges typically run their business by charging bitcoin fees and using them to buy other coins.

The FIU is expected to focus on whether there is money laundering using virtual assets in the exchange through this examination. In addition, last year’s congressional audit has shown that cross-trading and the “reward list” of businesses, which are listed after receiving an amount, are shown to be problems significant problems. The authorities are expected to check if there are any problems with these.

In addition, the FIU plans to check to see if the problems discovered during last year’s inspection have improved. If there is insufficient or no improvement, the level of punishment is expected to increase, such as the imposition of aggravating sanctions.

Financial authorities will then check other operators, including the five major won-denominated money markets exchanges such as Upbit and Bithumb. If there is a peculiarity in this year’s inspection, virtual asset operators who were not included in last year’s assessment will likely be inspected.

Since last May, South Korea has taken more measures to tighten fraud problems through virtual asset transactions. The price of Luna-Terra Coin plummeted 99% in less than a week, and recently is that FTX, one of the largest exchanges in the world, went bankrupt due to book manipulation.

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