South Korea’s Financial Supervisory Service (FSS) has developed a 24-hour surveillance system with local exchanges to monitor suspicious cryptocurrency activity, launching on July 19 alongside the new regulatory framework for crypto investor protection.
The system uses a standardized reporting format and criteria from the Korea Exchange to filter abnormal transactions. Major exchanges, handling 99.9% of South Korea’s crypto trades, have already implemented this system.
The FSS advises exchanges to form dedicated monitoring teams and report suspected illegal activities through a hotline.
The new law requires crypto providers to store 80% of deposits in cold storage and enroll in insurance programs.
Lawmakers are also working on follow-up legislation, including stablecoin regulation and institutional crypto trading, and exchanges are establishing a new code of conduct, re-evaluating 1,333 cryptocurrencies traded domestically.
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