South Korea Unveils Crackdown on Crypto Manipulation

The South Korean Financial Services Commission (FSC) has investigated over 40 cases of alleged unfair trading in digital assets, including market manipulation and fraudulent crypto trading, over the past two years. The commission's chair, Lee Eog-won, reported that 30 of these cases were referred to investigative bodies or reported for further action.

Since the Virtual Asset User Protection Act took effect in July 2024, the FSC has identified 25 suspects and estimated average unlawful gains at around 1.4 billion won (approximately $940,000) per case.

The law requires crypto service providers to separate customer deposits and holdings from company assets, with client funds kept in banks. The commission plans to expand AI-assisted surveillance and focus on 'high-risk areas.'