South Korea to tighten crypto oversight targeting market manipulation: report

South Korea is preparing to significantly strengthen its regulatory framework for the cryptocurrency market, specifically focusing on combating market manipulation and unfair trading practices. This move comes ahead of the implementation of the landmark Virtual Asset User Protection Act, scheduled to take effect in July 2024.

According to local reports, regulatory bodies, including the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU), will be granted enhanced powers to monitor and swiftly investigate illicit activities such as insider trading, pump-and-dump schemes, and unauthorized transactions. A core component of the new oversight regime is the authority for regulators to conduct emergency on-site inspections of virtual asset service providers (VASPs) suspected of facilitating market manipulation.

The Act stipulates severe penalties for violations, including heavy fines and imprisonment, aimed at deterring actors attempting to exploit loopholes in the currently fragmented regulatory environment. This comprehensive approach is designed to bolster investor confidence, which has been severely eroded by recent high-profile crypto scandals, and ultimately establish a more stable and orderly digital asset ecosystem in the country.

Source: South Korea to tighten crypto oversight targeting market manipulation: report