- South Korea’s FSS plans to probe crypto market manipulation under 2026 regulations.
- FSS focuses on whale trades, API spoofing, and rumor-spreading.
- New regulations may increase compliance costs for exchanges.
South Korea’s Financial Supervisory Service announced plans for crypto market probes to address manipulation issues, starting February 9, within the 2026 digital asset policy framework.
These efforts aim to enhance market integrity, particularly focusing on whale trades and API spoofing, following significant errors like Bithumb’s BTC transfer glitch affecting market stability.
South Korea’s Financial Supervisory Service (FSS) has announced plans to probe the crypto market for manipulation in a policy effective by 2026. The focus lies on activities such as whale trades, API spoofing, and rumor-spreading to ensure market integrity.
The FSS plans to implement stricter exchange rules and penalties for IT failures, likely increasing compliance costs. FSS Regulation Update
The FSS will lead investigations directly, utilizing AI monitoring to detect suspicious trading patterns. This initiative comes after the Bithumb incident , where 620,000 BTC were transferred incorrectly, triggering price drops and regulatory scrutiny.
Immediate effects include potential increased compliance costs for exchanges. Bithumb’s recent error highlighted vulnerabilities, prompting stricter rules on exchange fees and IT penalties. These changes may affect market operations and influence broader crypto regulations.
Potential outcomes involve enhanced regulatory frameworks, influencing global governance standardization in crypto . As AI tools aid real-time monitoring, the FSS’s actions highlight a shift towards rigorous market oversight. The moves align with President Lee Jae-myung’s priorities.
