Financial Supervisory Service Strengthens Monitoring of Abnormal Transactions in Virtual Assets

The Financial Supervisory Service (FSS) is strengthening its monitoring of abnormal transactions in virtual assets. It announced that it will expand the types of preventive measures to include 'wash trading', 'concentration of trading', and 'excessive corrections'. The need to enhance user protection measures has been raised due to price distortions and high volatility in the digital asset market, which makes it vulnerable to unfair trading. The existing types of abnormal transactions will now include 'wash orders with no execution possibility', 'concentration of trading in specific stocks', and 'excessive cancellations and corrections'. If abnormal trading recurs, the order restriction period will be applied differently: 5 days for the first occurrence, 10 days for the second, and 1 month for the third. Additionally, the FSS plans to strengthen the guidance on the reasons for preventive measures and the possibility of criminal penalties to preemptively block the occurrence of unfair trading. To allow users to intuitively check the risk levels of specific stocks, the market alert system will be expanded to three levels. The FSS will also enhance its AI-based market monitoring and investigation functions, establishing a market monitoring system (ORBIT) that collects and analyzes price, bid, and transaction information in real-time. In preparation for the enactment of the Digital Asset Basic Act, the FSS plans to establish a supervisory system for the listing and disclosure of virtual assets.

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