The Korea Financial Intelligence Unit (KoFIU) has announced plans to bolster supervision of the crypto industry, aiming to expel exchanges failing to meet strict operational standards.
This initiative reflects South Korea‘s broader objective of strengthening financial oversight and protecting consumers in the rapidly evolving digital asset sector.
Under KoFIU’s 2024 strategy, developed through consultations with industry stakeholders, the agency will intensify scrutiny of crypto exchanges during registration renewal, initiated since the framework’s establishment in the fall of 2021.
Starting in 2024, KoFIU will enhance monitoring and inspection efforts, targeting non-compliant exchanges to eliminate risks to investors and financial system integrity.
Moreover, KoFIU will implement a proactive approach to suspending trading activities linked to financial crimes, in line with FATF recommendations.
These measures precede the introduction of a virtual asset consumer protection law in July 2024, aimed at creating a safer trading environment.
Crypto exchanges recognized by the government three years ago are expected to undergo license renewal later this year.
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