S.Korea Probes Over 40 Crypto Trading Cases Since Law Took Effect

South Korea's financial authorities have investigated over 40 cases of unfair crypto trading since the Virtual Asset User Protection Act took effect in July 2024. According to Financial Services Commission Chair Lee Eog-won, regulators referred more than 30 cases for investigation and identified 25 suspects linked to misconduct.

The Virtual Asset User Protection Act sets rules for how virtual asset service providers handle customer funds and assets, requiring them to separate customer holdings from company assets and keep user deposits with banks. The law also gives regulators powers to inspect service providers and act against practices such as insider trading, wash trading, and market manipulation.

Lee said that the average unlawful gains reached about 1.4 billion Korean won, or roughly $940,000, per case. Regulators plan to improve surveillance, investigation, and monitoring systems using artificial intelligence and focus more closely on high-risk areas.