[South Korean Financial Authorities Strengthen Regulation on Overseas Perpetual Contracts, Violations May Be Referred to Prosecutors] BlockBeats News, October 16, the South Korean Financial Services Commission and the Financial Supervisory Service issued an investor advisory regarding perpetual contracts traded on overseas virtual asset platforms. Authorities stated they will enhance monitoring of overseas platforms offering perpetual contracts linked to South Korean stocks and indices. If illegal operations targeting South Korean residents, such as soliciting account openings or transactions, are confirmed, strict measures will be taken, including filing complaints with investigative agencies. Authorities will also require major overseas platform operators to comply with South Korean laws. South Korean authorities pointed out that these perpetual contracts have no expiration date, allow 24-hour trading, and some products offer leverage ranging from 10x to 200x. Using an example of contracts linked to South Korean indices with 150x leverage, they noted that an index fluctuation of approximately 0.66% in the opposite direction could trigger forced liquidation. Such products are not permitted under South Korea's domestic regulations. Most overseas platforms are not subject to South Korean financial laws, making dispute resolution and investor protection challenging in cases of bankruptcy, business suspension, unilateral transaction interruptions, or system failures. Additionally, the custody of client assets is difficult for domestic regulators to verify. Authorities stated they will carefully evaluate whether to introduce similar products domestically and establish relevant regulatory frameworks.