South Korea plans stricter crypto oversight by 2026
6.6 Regulation South Korea’s FSS will intensify crypto oversight by 2026, targeting manipulation, API abuse, and misinformation, with AI monitoring and stricter rules for a fairer market.
South Korea’s Financial Supervisory Service (FSS) has unveiled a robust plan to enhance oversight of the virtual asset market by 2026. The initiative targets manipulative practices such as whale-driven price manipulation, “cage” tactics during deposit and withdrawal suspensions, and “horse racing” schemes involving rapid bulk buying. The FSS will also address improper trading via API orders and the spread of false information on social media. Advanced AI tools will be used to detect suspicious trading patterns, flag abnormal price surges, and analyze coordinated manipulation efforts. Additional measures include stricter penalties for financial firms responsible for IT failures, enhanced security responsibilities for executives, and a comprehensive cyber threat monitoring system. A preparatory group will support new digital asset legislation, focusing on improved disclosure, licensing rules, and market discipline to foster a safer and more transparent crypto environment.
