SEOUL, South Korea, Monday, August 5, 2024 – South Korea’s top cryptocurrency exchanges will be required to pay a supervisory fee of about 300 million won ($220,240) to the Financial Services Commission (FSC), according reports.
The fee is part of the newly implemented Virtual Asset User Protection Act, which gives the FSC oversight of the crypto industry.
Upbit, Bithumb, Coinone, and Gopax will be subject to the charge, based on their operating revenue.
In early July the FSC announced launch of monitoring body based on Virtual Asset User Protection Act of 2023.
The FSC said the fee is necessary to cover the costs of regulating the industry. The regulator plans to begin inspections of crypto exchanges immediately.
The new fee is likely to add financial burdens to exchanges like Coinone and Gopax, which have reported operating losses.
The fee is similar to those imposed on other financial institutions and is expected to generate revenue for the FSC.
