The Financial Services Commission of South Korea said it will introduce supervisory fees for major cryptocurrency operators. This fee is under the Virtual Asset User Protection Act and will affect leading exchanges such as Upbit, Bithumb, and Coinone. Thus, using the operating income, the fee is projected to be 300 million won ($219,992) for the top exchanges.
South Korea Imposes Fees on Crypto Operators
The revised “Enforcement Decree of the Act on the Establishment of the Financial Services Commission” includes these supervisory fees in the list. Beginning next year, such operators will pay fees for inspection by the Financial Supervisory Service (FSS).
The FSC did this on July 1st with a new set of rules that brought about a radical shift in market regulation.
Upbit will contribute about 272 million won under the 2024 contribution rate of 2.686818 per 10,000 won operating revenue. Coinone and Gopax will provide about 6.03 million won, and 830,000 won, correspondingly.
Nevertheless, it can be excluded Korbit, which had operating revenue of 1.7 billion won ($1.2M) in the previous year.
New Fee Pressures Crypto Exchanges’ Finances
The new supervisory fee will put tremendous pressure on many virtual asset exchanges, especially those that are running in the red. Almost all exchanges, including Upbit and Bithumb, have financial issues. Even then, the two exchanges have to pay the supervisory fee, which will add to their financial burden.
This new requirement contrasts with the earlier belief in the industry that the fee imposition would not come into effect as soon as possible. Implementing these fees was more so because FSS inspections were scheduled to be done soon. This development shows that the government is ready to enforce the Virtual Asset User Protection Act strictly.
South Korean Exchanges Assess 1,333 Digital Assets
Thanks to South Korea’s new regulation of cryptocurrencies, a group of 20 domestic crypto exchanges will assess 1,333 digital assets over the next six months. This review will improve user protection and enforce adherence to the new set of rules.
By this, the coalition’s comprehensive review has shown that the industry is not passive to regulation. The exchanges want to prevent and mitigate risks in their digital currency products. This decision is consistent with the government’s ambitions of safeguarding consumers and preserving the honesty of the market.
Supervisory Fee Targets Businesses Over 3 Billion Won
According to the FSC, only businesses with operating revenue of 3 billion won or more are liable to the supervisory fee. This fee covers the FSS’s supervisory and service charges. The FSC’s announcement stressed the values of compliance with regulation and market stability.
The FSS will monitor the examination process, so virtual asset operators follow the new rules. This oversight ensures a safe and transparent cryptocurrency market in South Korea. The FSC’s decision proves that the government is a follower of strong regulation efficiency.
