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The Financial Supervisory Service in South Korea has taken action against major crypto exchanges in the country, summoning them to address concerns over recent fee hikes following the implementation of new crypto laws.
Regulatory Intervention
This intervention was prompted by a series of aggressive fee increases by these exchanges, raising questions about fair competition and user protection in the market. Specifically, one exchange’s decision to raise its usage fee rate drew attention from financial authorities, leading to a re-examination of fee calculation methods and the need to establish reasonable fee levels.
The deposit fee controversy is part of a larger regulatory shift in South Korea’s crypto market, as the FSS has announced plans for a system to monitor unusual crypto trading activity, aligning with the newly implemented Virtual Asset User Protection Act.
Industry Response
Simultaneously, the Digital Asset Exchange Alliance (DAXA) has initiated a comprehensive review of over 1,300 digital assets to ensure compliance with new legislation. This heightened oversight, coupled with clear parameters for identifying suspicious trading activities and the potential for severe penalties for non-compliance, signals a new era of stringent regulation in South Korea’s crypto market.
This regulatory environment could pose challenges for altcoins struggling to meet the new standards, as the industry braces for increased scrutiny and potential implications on market dynamics.
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