The Financial Supervisory Service (FSS) has commenced on-site consulting with digital asset exchanges, beginning with Upbit, in preparation for the upcoming implementation of the Digital Asset User Protection Act scheduled for July. This consulting initiative differs from the existing on-site inspections conducted by the Financial Intelligence Unit (FIU), focusing instead on assisting digital asset operators in preparing for the enactment of the law. Upbit, having been the first exchange to receive approval as a Virtual Asset Service Provider (VASP), has become the initial target for this consulting.
From the 21st to the 23rd of the last month, the FSS dispatched inspection personnel to Upbit for three days of consulting. This move is part of the FSS’s previously announced roadmap for regulatory compliance among digital asset operators, bringing a flurry of regulatory preparation activities to the digital asset industry. An Upbit representative reported that the consulting process proceeded without any significant issues, conducted at a standard level of consulting.
The purpose of this consulting is for digital asset operators to enhance their organizations for monitoring unusual transactions and to establish systems for the ongoing surveillance and reporting of such activities. The FSS has recommended that these systems be in place by April, with a particular focus on establishing systems to monitor unfair trading practices.
The FSS’s consulting efforts aim to encourage and support compliance with the User Protection Act, focusing on enhancing transparency and fairness in the digital asset market. Following Upbit, other fiat market exchanges such as Bithumb, Coinone, Korbit, and Gopax are also expected to undergo on-site consulting. This initiative is a crucial step toward ensuring that digital asset operators are adequately prepared for the new regulatory landscape, emphasizing the importance of protecting users and maintaining a fair trading environment.
