Financial Supervisory Service Conducts On-Site Inspection of Virtual Asset Exchange Coinone

The Financial Supervisory Service (FSS) has begun an on-site inspection of Coinone, the third-largest cryptocurrency exchange in South Korea.

According to the financial industry on the 5th, the FSS started the on-site inspection of Coinone from that day.

An FSS official explained, "The inspection is not being conducted due to any particular issue, but is part of a sequential inspection following the enforcement of the Virtual Asset Act," adding, "We plan to focus on compliance with the Virtual Asset Act, implementation of self-regulation, and responses to IT system incidents."

Previously, the FSS began on-site inspections of virtual asset service providers starting with Bithumb in September last year. Once the inspection of Coinone is completed, the FSS plans to proceed with an inspection of Upbit, the industry leader.

On the same day, after a meeting with securities company CEOs, Lee Bok-hyun, the head of the FSS, told reporters, "We are currently inspecting one exchange, and as soon as it is wrapped up, we are preparing to start the inspection of Upbit," adding, "The focus will be on issues related to IT system failures and the identification of abnormal transactions."