The financial regulator in South Korea announced on Tuesday that it will soon launch an inspection of virtual asset exchanges to identify any illegal or unfair transactions, while India continues its crackdown on crypto platforms. This marks the first such inspection since the country implemented stricter regulations against illegal trading of virtual assets in July under the new Virtual Asset Users Protection Act. The Act includes severe penalties, with life imprisonment for those who illicitly earn more than 5 billion won ($3.7 million).
The Financial Supervisory Service (FSS) plans to inspect two South Korean won-based cryptocurrency exchanges, prompted by “unusual cases” identified in earlier reviews, according to Yonhap news agency. Currently, South Korea has four won-based crypto exchanges.
Additionally, three more cryptocurrency exchanges and one crypto wallet provider will undergo inspection. The FSS also stated that it would investigate any other exchanges if problems or complaints arise.
The inspection aims to uncover any illegal or suspicious activities and ensure compliance with regulations. This includes safeguarding virtual assets and maintaining records of transactions. The financial regulator emphasized that the FSS is committed to establishing market order by punishing any illegal activities discovered during the inspection. They also intend to push for regulatory revisions if necessary by identifying areas where improvements are needed.
Meanwhile, in India, the government has implemented stringent anti-money laundering regulations and a comprehensive tax structure for cryptocurrencies. The Enforcement Directorate (ED) has been actively dismantling fake cryptocurrency rackets across the country. In 2022, India introduced a 30 percent tax on virtual currencies and mandated a 1 percent deduction for every crypto transaction.
