More sophisticated surveillance system, system improvement in the first half of next year
(Seoul = Yonhap News) Reporter Ji-hoon Han and Sae-rom Chae = As volatility in the virtual asset market intensifies, including the rapid rise in the price of Bitcoin after the U.S. presidential election, financial authorities have decided to improve the abnormal transaction surveillance system more tightly and elaborately.
The purpose is to upgrade the system by taking into account the status of exchanges’ abnormal transaction monitoring operations and the recent virtual asset market situation since the implementation of the Virtual Asset User Protection Act in July.
◇ Advancement of abnormal transaction monitoring system… Strengthening consumer damage prevention
According to the financial authorities on the 24th, the Financial Supervisory Service plans to inspect the operation of the abnormal transaction surveillance system of virtual asset exchanges within the year and improve the surveillance system and consumer damage prevention process by the first half of next year.
Currently, exchanges are identifying and reviewing abnormal transactions in accordance with the Financial Supervisory Service’s guidelines, taking into account price, trading volume fluctuations, trading type, market price increase rate by period, disguise/clear trading, high price purchase orders, and order participation rate.
Financial authorities are concerned that as volatility in the virtual asset market has recently intensified, abnormal transactions that the current system cannot filter out may occur.
For example, as the distribution of virtual assets increases, even if the order volume increases, the rate of involvement in the asking price decreases, which means that cases where abnormal transactions are suspected may arise, although it currently falls short of the standards for detecting abnormal transactions.
After inspecting the status, the Financial Supervisory Service plans to instruct exchanges to review complex factors in addition to existing quantitative standards to further refine the extraction standards and reflect them in their internal regulations.
The Financial Supervisory Service is reorganizing not only the exchange system but also its own abnormal transaction detection system.
Financial authorities also plan to guide exchanges to strengthen consumer damage prevention measures.
According to the current virtual asset market research regulations, if an abnormal transaction occurs, the exchange must notify users of transaction caution and suspend trading for the user or virtual asset.
However, in the recent virtual asset ‘Avail’ incident, it was pointed out that the exchange failed to detect abnormal transactions and did not take proper user protection measures. Avail soared 1,400% on the same day after being listed on Bithumb in July.
An official from the Financial Supervisory Service said, “We will check whether user protection measures are being implemented well in the field and discuss whether more effective measures can be introduced to protect users.”
Bitcoin surpasses $99,000 for the first time in history
(Seoul = Yonhap News) Reporter Shin Hyun-woo = The price of the cryptocurrency Bitcoin is showing an upward trend, surpassing the $99,000 level for the first time in history, and the price of Bitcoin is displayed at the Gangnam branch of Bithumb Lounge in Seoul on the morning of the 22nd. 2024.11.22 [email protected]
◇ ‘Coin stocks’ also soared as Bitcoin hit its highest price… Market overheating continues
The volatility of the virtual asset market has greatly expanded since the US presidential election.
Virtual assets, including Bitcoin, have been designated as representative ‘Trump-benefiting assets’ and are siphoning off investors’ money.
Bitcoin price is hitting all-time highs every day.
On Coinbase, an American virtual asset exchange, the price of one Bitcoin is close to exceeding $100,000. At one point, it soared to $99,850.
Upbit, a domestic virtual asset exchange, also recorded a new price of 138.77 million won on the 22nd. It is more than 40% higher than the closing price at the end of last month (98,112,000 won).
Some in the industry predict that Bitcoin could rise to $120,000 during this bull market. As a result, the coin buying trend is not slowing down.
According to CoinMarketCap, a virtual asset information site, the 24-hour trading volume of Korea’s five major virtual asset exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) reached 25.32 trillion won as of 6 p.m. the previous day.
This is an astronomical amount, nearly 10 trillion won more than the stock market (8.0172 trillion won) and KOSDAQ market (7.9967 trillion won) combined on the 22nd.
The ‘Virtual Asset Fear and Greed Index’ estimated by CoinMarketCap was 87 as of the previous day, remaining in the ‘extreme greed’ (80 or higher) range for more than 10 days. This is interpreted to mean that the market is overheated.
As market funds are concentrated in the virtual asset market, circular selling among altcoins (virtual assets excluding Bitcoin) sometimes appears.
The previous day, the transaction volume of Ripple, Dogecoin, and Stellar Lumen on Upbit far exceeded that of the leading Bitcoin. There were frequent cases of ‘coin stocks’ with a small trading volume rising sharply without any reason.
Meanwhile, exchanges emphasize that they are supplementing investor protection measures.
Dunamu, which operates Upbit, upgraded its existing market surveillance system early this month and added a monitoring function that allows users to view market trends at a glance.
Bithumb is also strengthening its system to block unfair transactions and prevent money laundering, while preparing to introduce a system to prevent cross-trading.
Financial authorities are strengthening daily monitoring through exchanges and hotlines, and are especially closely examining the trading volume and price trends of small coins.
Here are two PAA-related questions based on the provided interview context:
## World Today News Interview: Tightening the Grip on Cryptocurrency Volatility
**Introduction:**
Welcome to World Today News. Today we’re diving deep into the turbulent world of cryptocurrency with two esteemed guests. With Bitcoin surging past $99,000 and the overall crypto market experiencing record-breaking volatility, financial authorities are stepping in to strengthen oversight and protect consumers. Joining us are…
**(Introduce your guests with their names, affiliations, and expertise. Ensure diverse perspectives – one guest could favor tighter regulation, the other a less interventionist approach.)**
**Section 1: The Need for Enhanced Surveillance**
* **Opening Question:**
The article highlights the financial authorities’ decision to upgrade their abnormal transaction monitoring system. What prompted this decision, and what specific risks are they hoping to address?
* **Follow-up questions:**
* Do you believe the current volatility in the cryptocurrency market justifies stricter surveillance measures?
* What are the potential benefits of a more sophisticated surveillance system?
* What are the potential drawbacks, particularly concerning user privacy and potentially stifling innovation?
**Section 2: Consumer Protection in a Volatile Market**
* **Opening Question:**
The article mentions the recent “Avail” incident, highlighting the need for robust consumer protection measures.
How effective are current regulations in safeguarding investor interests in the crypto market?
* **Follow-up questions:**
* What specific measures can exchanges implement to better protect users from abnormal transactions and potential scams?
* Should the government play a more active role in regulating cryptocurrency investments, similar to traditional financial markets?
* How do we balance investor protection with the decentralized and innovative nature of cryptocurrency?
**Section 3: The Future of Cryptocurrency Regulation**
* **Opening Question:**
Given the rapid evolution of the cryptocurrency market, how should regulatory frameworks adapt to remain effective?
* **Follow-up questions:**
* Should the focus be on regulating specific cryptocurrencies, or the technology underlying them?
*
What role should international cooperation play in developing a unified approach to cryptocurrency regulation?
* Do you envision a future where cryptocurrencies become more integrated into the traditional financial system, requiring even tighter oversight?
**Conclusion:**
As the crypto market continues its meteoric rise and attracts increasing attention from both investors and regulators, finding the right balance between fostering innovation and protecting consumers will be crucial.
**(Thank your guests for their insights and offer closing remarks reflecting the complexity and significance of the topic.)**
