The post South Korean Regulator Selects Bithumb for On-Site Inspections Following New Virtual Asset Regulations appeared on BitcoinEthereumNews.com.

South Korean Financial Supervisory Service (FSS) has selected cryptocurrency exchange Bithumb as the first candidate for on-site inspections of virtual asset service providers (VASPs), according to a report from Newsis. The FSS notified Bithumb on September 10, 2024, about the inspection, which is set to begin after the upcoming Chuseok holiday. The inspection will focus on evaluating Bithumb’s compliance with the recently implemented Virtual Asset User Protection Act, along with assessing its systems for customer protection and its measures to prevent unfair trading practices. This marks the beginning of the regulator’s in-depth scrutiny of cryptocurrency platforms to ensure they adhere to the new legal framework. What the Inspection Will Focus On The FSS’s decision to inspect Bithumb, one of South Korea’s largest cryptocurrency exchanges, underscores the growing regulatory attention being directed toward virtual asset service providers. The upcoming inspection will cover several key areas, including: Compliance with the Virtual Asset User Protection Act: This newly enacted legislation provides guidelines for the protection of virtual asset users, outlining the responsibilities of VASPs in safeguarding customer funds and ensuring transparency. The inspection will review whether Bithumb is in full compliance with the act’s requirements. Customer Protection Systems: The FSS will examine Bithumb’s systems designed to protect its users, including measures to prevent data breaches, secure customer assets, and ensure smooth transactions. With cryptocurrency platforms handling vast sums of money and personal data, robust customer protection mechanisms are critical to maintaining trust and security. Measures to Prevent Unfair Trading Practices: The inspection will assess Bithumb’s internal controls aimed at preventing activities such as market manipulation, insider trading, and wash trading. Unfair trading practices have been a point of concern for regulators, particularly as the cryptocurrency market matures and more retail and institutional investors become involved. The Significance of the Virtual Asset User Protection…

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Filed under: News - @ September 11, 2024 4:15 am