[DigitalToday reporter Oh Sang-yup (오상엽)] Financial regulators have begun on-site checks at four other exchanges — Upbit, Coinone, Korbit and Gopax — in addition to Bithumb, where a bitcoin misdeposit incident occurred.

A report the financial authorities submitted on Tuesday to the National Assembly's Political Affairs Committee shows the authorities will start sequential on-site checks led by an "emergency response team" later in the day.

The checks aim to examine asset verification systems and overall internal controls. The authorities shifted an on-site check of Bithumb to a formal inspection on Monday.

Earlier, on Feb. 7, they set up an emergency response team to serve as a control tower for the response by relevant agencies to the Bithumb incident.

Based on the results of the on-site checks, the authorities plan to review whether to improve self-regulation by the Digital Asset Exchange Alliance (DAXA) and reflect the content in the second phase of digital asset legislation.

They also plan to immediately switch to a formal inspection if any illegal activity is found at these exchanges.

"Check" focuses on monitoring business activities and identifying the situation, while "inspection" goes further to confirm potential legal violations and impose sanctions.

The National Assembly plans to hold an emergency inquiry into pending issues on Tuesday morning to address the Bithumb incident. The committee views the cause of the incident as stemming from weaknesses in internal control systems, among other factors.