Enforcement of the Virtual Asset User Protection Act on July 19
Prohibition of Coin Price Manipulation, Insider Trading, and Fraudulent Transactions
Virtual Asset Exchanges to Monitor Abnormal Transactions Continuously
The Financial Supervisory Service (FSS) is establishing and fully operating a real-time monitoring system for abnormal virtual asset (coin) transactions in collaboration with virtual asset exchanges. This is because, starting from the 19th, with the enforcement of the Virtual Asset User Protection Act, unfair trading practices in the virtual asset market will be prohibited, and virtual asset exchanges will be required to continuously monitor abnormal transactions.
On the 4th, the FSS announced that it has prepared and supported the "Real-time Monitoring Guidelines for Abnormal Transactions" to help virtual asset exchanges smoothly fulfill their obligations under the Virtual Asset User Protection Act.
First, a system for accumulating trading data was established. A standardized trading data format was created to detect and extract abnormal transactions. Each virtual asset exchange has built an IT system to accumulate quote information and trading order media information.
By emulating the abnormal transaction extraction criteria of the Korea Exchange Market Surveillance Committee, virtual asset exchanges have also built abnormal transaction extraction systems. Models and quantitative indicators were developed to extract suspicious abnormal transactions indicative of market manipulation. The five major KRW exchanges and key coin exchanges have already completed system construction.
As part of this effort, a system for reviewing abnormal transactions was also established to determine whether there are suspicions of unfair trading in virtual assets. A dedicated team for real-time monitoring will be set up to extract, analyze, and review abnormal transactions, staffed with specialized personnel.
The FSS has also established criteria for notifying relevant authorities or reporting to investigative agencies regarding abnormal virtual asset transactions. The FSS and the five major KRW exchanges have installed dedicated lines for data transmission and reception, and real-time monitoring departments and hotlines have been established at all exchanges.
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