South Korea's Financial Supervisory Service (FSS) has launched a real-time 24-hour surveillance system aimed at curbing fraudulent activities in the cryptocurrency market.

This initiative aligns with the upcoming Virtual Asset User Protection Act, set to commence on July 19, marking the country's first comprehensive cryptocurrency law.

The system, developed in collaboration with local exchanges from January to May, uses standardised transaction data from the Korea Exchange to detect unusual activities through sophisticated models and simulations.

Major exchanges, handling nearly all cryptocurrency trading in South Korea, have integrated this monitoring system to enhance regulatory oversight and detect illicit behaviors such as market manipulation and unfair trading practices.

The new law mandates additional protections for users, including insurance coverage for security incidents and stricter deposit security measures, while ongoing legislative efforts aim to further regulate stablecoins and institutional cryptocurrency trading in the country.