Korea Mulls Account Freezes and Whistleblower Bounties for Crypto Market Abuse

South Korea's financial authorities are considering introducing payment suspensions on digital asset accounts and linked bank accounts to prevent the concealment of illicit gains. This move is part of a broader effort to strengthen regulatory oversight as the country prepares a second-stage digital asset law.

The Financial Services Commission (FSC) and other relevant agencies are actively reviewing measures modeled on existing capital market frameworks, including the ability to freeze both digital asset accounts and linked bank accounts. A structured reporting and bounty system would be designed to detect market abuse at an early stage.

This proposed expansion of South Korea's current crypto regulatory toolkit would mark a significant shift in addressing gaps in investor protection and market integrity that have persisted since the initial regulatory framework was implemented.