South Korea has introduced a significant regulatory update for cryptocurrency exchanges with the enactment of the Virtual Asset User Protection Act. This new regulation mandates that major cryptocurrency exchanges like Upbit, Bithumb, and Coinone pay supervisory fees based on their operating revenues. The fees are intended to fund inspections by the Financial Supervisory Service (FSS) and enhance oversight of the crypto sector to mitigate risks and protect users.The supervisory fees, which are calculated as a percentage of the previous year's operating revenue, will start being collected next year. The fee for each exchange is estimated to be around 300 million won (approximately $220,000). However, exchanges with operating revenues less than 3 billion won, like Korbit, are exempt from this fee. This move has been perceived as a step towards tighter regulation aimed at ensuring fair practices and financial stability within the burgeoning crypto market.