South Korean regulators plan to freeze accounts involved in cryptocurrency manipulation during the investigation phase.
TechFlame
2026-01-06 16:12
TechFlame2026-01-06 16:12
English
TechFlame reports that South Korean financial regulators are evaluating the introduction of a "preventive freeze" mechanism, which would allow temporary freezing of accounts involved in suspected price manipulation of cryptocurrency transactions before profits are cashed out. The Financial Services Commission (FSC) is studying a trading suspension system aimed at aligning cryptocurrency enforcement standards with those of the stock market, addressing current delays caused by the need to obtain court orders. This discussion coincides with South Korea's second phase of cryptocurrency legislation, which may focus on stablecoins and market manipulation. If implemented, regulation would shift from post-incident accountability to real-time intervention, increasing scrutiny of high-frequency, automated trading and short-term abnormal fluctuations, significantly tightening the market enforcement environment.