South Korea’s FSS Launches AI-Powered Crackdown on Crypto Market Manipulation
TLDR: FSS targets whale trading, cage methods, and racehorse schemes in planned 2026 market investigations AI-powered systems will analyze abnormal price surges within seconds to identify manipulation patterns Digital Asset Basic Act preparatory team established to support phase-2 virtual asset legislation New licensing manuals developed for digital asset service providers and stablecoin issuers nationwide South Korea’s Financial Supervisory Service announced comprehensive plans to investigate virtual asset market manipulation on February 9. The regulatory body outlined targeted enforcement actions against high-risk trading schemes that disrupt market order. The FSS will deploy artificial intelligence tools to detect abnormal price movements and suspicious trading patterns. A preparatory team for the Digital Asset Basic Act was also established to support upcoming phase-2 legislation implementation. Planned Investigations Target High-Risk Marke...