Dex-Trade News Digest: South Korea’s Crypto Monitoring and Germany’s Bitcoin Sell-Off Impact
South Korea Launches Continuous Monitoring System for Crypto Transactions Ahead of New Investor Protection Act
The Financial Supervisory Service (FSS) of South Korea announced on July 4 the launch of a “continuous monitoring system” to track suspicious cryptocurrency transactions on exchanges. This new system, developed in collaboration with South Korean digital asset exchanges, is set to go live on July 19, coinciding with the implementation of the Virtual Asset User Protection Act.
Enhancing Market Oversight
The FSS stated that the new system would enable constant monitoring of abnormal transactions to filter out and report suspicious activities, including market manipulation and illegal trading practices. This comprehensive oversight will cover approximately 99.9% of the country’s trading volume.
Exchanges will be required to establish dedicated teams to monitor dubious transactions and follow guidelines for identifying illegal activities through auditing information such as on-chain data. The aim is to protect investors and regulate unfair trade practices, as mandated by the Virtual Asset User Protection Act passed in 2023.
Stricter Compliance and Security Measures
As of June 16, 29 cryptocurrency exchanges, including major players like Upbit, Bithumb, Coinone, Korbit, and Gopax, were registered with the FSS and will be subject to this continuous monitoring. These exchanges must adhere to stricter review guidelines for token listings, enhance market integrity, and safeguard over 80% of deposits in cold storage. They must also enroll in insurance programs for potential user compensation in case of security breaches.
South Korean lawmakers are currently developing follow-up legislation to address stablecoin regulation and allow institutional crypto trading. This includes a new code of conduct for local firms and re-evaluating the compliance of 1,333 cryptocurrencies being traded domestically.
Germany Transfers Another 1300 BTC to Exchanges as Market Dips
On July 4, the German government transferred 1,300 BTC to major exchanges, including Coinbase, Kraken, and Bitstamp, continuing a trend of significant Bitcoin transfers that could influence the market.
Details of the Transfers
Blockchain investigator PeckShieldAlert revealed that 1,300 Bitcoin, valued at approximately $75.69 million, were distributed across three major crypto exchanges: 400 BTC each to Coinbase and Kraken, and 500 BTC to Bitstamp. An additional transfer of 1,700 BTC, valued at $98.76 million, was made to an external address, totaling 3,000 BTC moved by the German government on July 4.
This series of transfers follows previous movements on July 2 and June 26, where 282.74 BTC and 250 BTC, respectively, were transferred to similar exchanges. The origins of these Bitcoin transactions trace back to a major seizure in 2013 from the operators of Movie2k.to, a movie piracy website.
Impact on the Bitcoin Market
The recent transfers have fueled speculation within the crypto community about a potential selloff, which could impact Bitcoin's market price due to increased selling pressure. Observers suggest that the government may be preparing to liquidate more Bitcoin using the newly active wallet.
This development coincides with the impending repayment of BTC to creditors of the defunct Mt. Gox exchange, which could introduce additional Bitcoin into the market. Last month, the US government also moved significant amounts of Bitcoin, adding to market concerns.
As a result of these combined factors, Bitcoin's market price has experienced a decline. At press time, BTC is trading at $57,000, reflecting a 5.39% drop in the past 24 hours.
