Enhanced Regulation to Combat Cryptocurrency Market Manipulation

South Korea's Financial Supervisory Service recently announced a 2026 regulatory plan aimed at strengthening oversight of the virtual asset market. Key areas of focus include combating market price manipulation, 'cage' tactics, and 'horse racing' strategies.

AI Tools to Improve Surveillance

The FSS plans to develop AI tools to monitor unusual fluctuations in virtual assets in real time, quickly identifying suspicious transactions to enhance market transparency.

Preventing IT Risks and Strengthening Legal Frameworks

To mitigate technology-related risks, South Korea will introduce punitive fines and reinforce executive accountability for cybersecurity. Additionally, the FSS has established a working group to support the development and implementation of the 'Digital Asset Basic Act.'