Crypto Crackdown: South Korea Announces Market Manipulation Investigation
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South Korea launches an investigation targeting suspected cryptocurrency price manipulation. New digital asset law aims to improve transparency and investor protections. Authorities plan stricter cybersecurity rules and fines for financial IT failures. South Korea’s financial regulator announced plans to launch a targeted investigation into cryptocurrency price manipulation schemes as part of a broader effort to strengthen oversight of the digital asset sector. The initiative was outlined in the 2026 policy agenda released by the country’s Financial Supervisory Service (FSS), which aims to improve market transparency and protect investors. Officials said the investigation will focus on trading practices suspected of distorting prices, including coordinated large-volume transactions, manipulation during deposit or withdrawal suspensions on exchanges, and sudden bulk purchases designed to push prices sharply higher. The regulator also plans to monitor suspicious trading activity carried out through automated trading systems and social media campaigns spreading misleading information. New Law Framework and Disclosure Rules in Preparation Alongside enforcement measures, authorities have created a preparatory committee to support the rollout of the upcoming Basic Digital Asset Act. The group will work on establishing disclosure requirements related to token issuance and exchange listings, as well as developing licensing and supervisory procedures for digital asset service providers and stablecoin issuers. Regulators also intend to review exchange fee structures and improve transparency rules to encourage fair competition and help investors make better-informed decisions. Stronger Action Against Financial Crimes The 2026 plan includes wider efforts to combat financial crimes affecting the public, such as illegal transactions and voice phishing. Authorities are considering the creation of a joint investigative framework involving specialized judicial police units to respond more quickly to financial fraud cases. In addition, financial and telecommunications firms will share data to support early detection systems powered by artificial intelligence, aimed at identifying potential fraud schemes before they…
Filed under: News - @ February 9, 2026 10:21 am