Regulation
South Korea Crypto Exchanges Under Probe For Fee Hikes Post New Regulation

The Financial Supervisory Service (FSS) of South Korea has summoned five leading crypto exchanges in the wake of just implemented crypto laws, signaling heightened scrutiny of industry practices. This move comes in the wake of aggressive fee hikes by major players in the market, sparking concerns about fair competition and user protection.
South Korea Crypto Exchanges Under Scrutiny
South Korea’s Financial Supervisory Service (FSS) has summoned the country’s five major crypto exchanges which are, Upbit, Bithumb, Coinone, Korbit, and Gopax to address the ongoing controversy surrounding deposit usage fees. This urgent meeting, held on July 24, 2024, comes in the wake of intensifying competition among exchanges to increase their fee rates following the implementation of the Virtual Asset User Protection Act.
The FSS intervention was triggered by Bithumb’s announcement on July 23 to raise its usage fee rate from 2.2% to 4.0% per annum, a decision that was later withdrawn. This move came after a series of fee hikes by various exchanges since the Act’s implementation on July 19-20, with Upbit increasing its rate from 1.3% to 2.1%, and Korbit following suit with an increase to 2.5%.
Financial authorities deemed Bithumb’s 4% rate as potentially unreasonable, citing Article 5 of the Virtual Asset Industry Supervision Regulations. This article mandates that deposit usage fees must be “reasonably calculated” based on operating income and incurred expenses.
During the meeting, the FSS aimed to re-examine the calculation methods for deposit usage fees and address disagreements among exchanges regarding reasonable fee levels. South Korea Crypto Exchanges were required to provide detailed information on their deposit management practices and fee calculation methods.
Also Read: Bitwise CIO Teases More Crypto ETFs After Ethereum Success, Solana & XRP Next?
Broader Regulatory Landscape and Future Implications
The deposit fee controversy is part of a larger regulatory shift in South Korea crypto market. The FSS had previously announced plans for a system to monitor unusual crypto trading activity, requiring exchanges to provide detailed data. This aligns with the newly implemented Virtual Asset User Protection Act.
Simultaneously, the Digital Asset Exchange Alliance (DAXA) has initiated a comprehensive review of over 1,300 digital assets to ensure compliance with new legislation. This review, while not a mass delisting effort, could pose challenges for altcoins struggling to meet regulatory standards.
The FSS guidelines have set clear parameters for identifying suspicious trading activities, including abnormal volume and price ranges, large transactions, and slow execution. Non-compliance could result in severe penalties, signaling a new era of stringent oversight in South Korea crypto market.
Also Read: Bitcoin ETFs End Inflow Streak Amid High Odds Of Kamala Harris At Bitcoin Conference
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.
Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin
In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.
Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.
Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.
“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.
In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.
Industry Players Are Bracing For New Stablecoin Regulations
Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.
For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.
Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.
New FDIC Guidelines on Crypto-Related Activities
The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.
Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.
This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.
“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.
This Is A Developing News, Please Check Back For More
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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