The Financial Services Commission of South Korea will introduce an AI monitoring system for virtual asset regulation: within the past two years, it has investigated and dealt with 30-plus cases of market manipulation.

Deep Tide TechFlow news. On July 19, according to South Korean media outlet KBS, the Korea Financial Services Commission announced today the results of its virtual asset market regulation. Since the implementation of the Virtual Asset User Protection Act two years ago, it has completed investigations into about 40 cases of unfair virtual asset trading and reported or notified judicial authorities of more than 30 cases. It focuses on cracking down on activities that disrupt market order, such as short-term manipulation and “pump-and-dump.” In the future, it will further strengthen market monitoring capabilities and build an AI-based virtual asset regulatory system, including real-time market monitoring, second-by-second price manipulation analysis, and automatic identification of suspicious accounts and trading intervals.

In addition, the Korea Financial Services Commission has also investigated and handled cases including short-term manipulation using borrowed API keys, project issuers cooperating to manipulate prices, and large “whale” manipulation through coordinated trading linked with overseas exchanges. Some fraud-related trading cases involve project teams spreading false information via social media to lure investors into buying, as well as arbitrage manipulation by using the USDT and BTC market price linkage on exchanges. The agency plans to introduce an illegal proceeds account freezing mechanism and an unfair trading reporting and rewards system in subsequent legislation related to digital assets.