TechFlow news: The Korea Financial Supervisory Service (FSS) has announced its first-ever inspection of virtual asset service providers, marking the first action since the implementation of the Virtual Asset User Protection Act in July. The FSS plans to inspect six institutions, including two Korean won-market exchanges, three token-market exchanges, and one wallet/custody service provider. Notably, two out of major won-market exchanges—including Upbit, Bithumb, Coinone, Gopax, and Korbit—will be selected for inspection.
The inspection will focus on regulatory compliance, user protection systems, internal control mechanisms, and unfair trading oversight. The FSS will review aspects such as user asset management, cold wallet usage, insurance and reserve status, transaction recordkeeping, and abnormal transaction monitoring systems. For violations, the FSS stated it will impose strict sanctions to maintain market order, while also encouraging service providers to strengthen self-regulation.
