Local cryptocurrency exchanges in South Korea are increasing their regulatory measures in anticipation of the upcoming virtual asset user protection law. The Digital Asset Exchange Alliance, representing five major local crypto exchange operators, has issued guidelines advising exchanges to monitor abnormal transactions and has updated the internal control standards for exchange operators. The new law, set to be enacted on Friday, will require virtual asset service providers to be vigilant against abnormal transactions, report suspicious cases to financial regulators, and take steps to protect users. Bithumb Korea, the operator of the country's second-largest cryptocurrency exchange, has formed a monitoring committee to prevent market disturbance and unfair trade practices. Additionally, the company has introduced a reward system to encourage individuals to report on unfair trading practices by employees. Meanwhile, Dunamu, the operator of Upbit, the largest cryptocurrency exchange in Korea, has also been enhancing its control system, including implementing a track system to record asking prices of trading and forming a committee to screen abnormal transactions. As part of the new law's implementation, stricter regulations will be imposed on the local virtual asset market, including a reexamination of the listing of approximately 600 coins traded in the country. Exchanges will screen listed coins for credibility and insufficient information on issuance and distribution volume, with plans to conduct screenings every three months after the initial six-month period. Overall, local cryptocurrency exchanges in South Korea are proactively taking steps to comply with the upcoming virtual asset user protection law, including enhancing monitoring systems, forming committees, and reexamining the listing of coins traded in the market. These efforts aim to ensure compliance with the new regulations and to protect users from potential risks associated with virtual asset trading.