South Korea Launches New System to Control Crypto Fraud

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The Financial Supervisory Service of South Korea has announced the development of a new 24-hour surveillance system in collaboration with local exchanges.

This system is designed to detect any suspicious activities in the cryptocurrency market. It is set to go live on July 19, coinciding with the implementation of the country’s first regulatory framework for protecting crypto investors.

Over the past few months, the FSS has been working on standardizing reporting formats for transaction data submissions from local exchanges.

These reports will be used to identify and separate irregular transactions from regular ones. The agency has also conducted simulations and created models and metric indicators to effectively filter out abnormal transactions.

The FSS has also urged exchanges to establish a dedicated team to monitor potentially fraudulent transactions and has provided guidelines for identifying illegal activities through auditing information, such as on-chain data. Some examples of illegal activities in the crypto market include unfair trading using undisclosed information, price manipulation, and falsifying circulation data.