South Korea’s Financial Services Commission (FSC) is launching an investigation into the transaction fees charged by domestic cryptocurrency exchanges as part of a step toward reducing trading costs for users across the country.
Announced on Thursday, the move aligns with President Lee Jae-myung’s campaign pledge to lower virtual asset transaction fees from the current 0.05 percent to 0.015 percent, according to a report by the Herald Economy, the country’s local media.
South Korea revealed in a policy briefing
The financial commission announced the probe during a policy briefing to the State Affairs Planning Committee, the presidential transition team for the Lee administration.
The regulator plans to survey major local exchanges, including Upbit, Coinone, and Bithumb, focusing on their fee structures, charging methods, and revenue collected from users.
Meanwhile, the primary objective of the investigation is to determine whether South Korean exchanges charge higher fees than foreign platforms.
“We need to examine whether the current fees of domestic exchanges are an excessive burden on consumers and whether they are at an appropriate level compared to overseas cases,” an FSC official said.
The findings will help the regulator assess whether intervention is necessary to ensure fair pricing.
The probe is part of a broader policy supporting youth asset formation, reflecting growing concerns about the financial burden on retail traders. While the commission has not yet set a target fee rate, it plans to establish policy standards based on comparative analysis and user feedback.
“We have not set a target commission rate yet,” the official noted. “We will establish policy standards through comparisons between domestic and foreign exchanges and analysis of user convenience.”
South Korea President’s crypto agenda takes shape
The investigation highlights the nation’s President’s commitment to promoting a more competitive and transparent cryptocurrency market.
The President Lee administration has adopted a crypto-friendly stance, viewing blockchain innovation as a driver of economic growth. Lowering transaction fees is seen as a way to attract more participants and align South Korea’s crypto ecosystem with global standards.
The financial administration’s move also follows heightened regulatory scrutiny of the crypto sector, including recent fraud cases and market manipulation scandals. By addressing fee structures, the regulator aims to enhance investor protection and market integrity.
Following the latest announcement, exchanges may face pressure to revise their pricing models, potentially leading to more competitive fees and increased transparency.
The outcome could set a precedent for consumer-focused crypto regulation in the region, reinforcing the nation’s position as a key player in the digital asset space.