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South Korea plans tougher oversight of crypto markets and IT failures
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Regulators will target manipulation by whales and coordinated price pumps
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The move follows a major transfer error at Bithumb
Crackdown on Market Abuse
Financial Supervisory Service said it will step up oversight of the crypto market, focusing on practices that undermine fair trading and investor protection.
Regulators plan targeted investigations into price manipulation, coordinated pump schemes, misuse of API trading tools, and the spread of false information through social media.
IT Failures Under Scrutiny
The FSS also announced stricter penalties for IT-related failures across financial institutions. The move follows a high-profile incident at Bithumb, where roughly 620,000 BTC were mistakenly transferred to users during a promotional event before most funds were recovered.
Preparing for New Crypto Law
Separately, South Korea is preparing for the rollout of the Digital Asset Basic Act, which is expected to introduce new disclosure rules, licensing requirements, and stablecoin oversight.
Authorities said the goal is to strengthen market integrity while laying the groundwork for the next phase of crypto regulation in the country.
