The Financial Supervisory Service (FSS) of South Korea has announced that it will conduct its first inspection of virtual asset service providers, the first action since the implementation of the Virtual Asset User Protection Act in July. The FSS plans to inspect 6 institutions, including 2 won market exchanges, 3 token market exchanges, and 1 wallet/custody service provider. It is worth noting that 2 of the major won market exchanges such as Upbit, Bithumb, Coinone, Gopax, and Korbit will be selected for inspection. The inspection focuses on regulatory compliance, user protection systems, internal control mechanisms, and unfair trading supervision, among others. The FSS will review aspects such as user asset management, cold wallet usage, insurance and reserve status, transaction record maintenance, and abnormal transaction monitoring systems. For illegal activities, the FSS said it will impose strict sanctions to maintain market order, while supporting businesses to strengthen self-regulation.