South Korea Introduces Stringent Regulations for Cryptocurrency Exchanges

South Korea has become one of the most heavily regulated countries for cryptocurrency trading, thanks to a series of measures introduced by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS). The new regulations are designed to prevent payment failures and ensure that exchanges handle customer funds securely.

The core component of these regulations is the 5-minute asset check system. This involves continuous monitoring of all deposit and withdrawal transactions, with automatic alerts triggered in case of discrepancies between recorded and actual assets. Exchanges must also maintain comprehensive audit trails for regulatory review, mirroring surveillance systems used in traditional securities markets.

Furthermore, exchanges are required to implement bank-level controls for manual transactions conducted by employees. This includes multi-signature authorization systems, separation of duties, and transaction limits comparable to those used by traditional banks. Additionally, all manual transactions exceeding specific thresholds will require documented justification and supervisory approval.