Virtual Asset Operators Conduct Continuous Monitoring of Suspicious Transactions
Detection of Self-Issued Trading, Price Manipulation, and Fraudulent Transactions
Fines or Notification to Investigative Agencies Depending on Severity
Financial authorities will officially begin investigating unfair trading in virtual assets starting from the 19th, coinciding with the enforcement of the "Virtual Asset User Protection Act." Accordingly, if insider trading, price manipulation, fraudulent transactions, or trading of self-issued coins by virtual asset service providers are detected, penalties such as fines may be imposed, or cases may be reported to investigative agencies.
The Financial Services Commission announced on the 7th that from the enforcement date of the "Virtual Asset User Protection Act" on the 19th, it will immediately commence continuous monitoring of virtual asset exchanges and investigations into unfair trading in the virtual asset market.
To this end, virtual asset exchanges have established a continuous abnormal transaction monitoring system with the support of financial authorities. When abnormal transactions are detected through the system, the results of the review are reported to the financial authorities. Alternatively, if reports of unfair trading are received through the Financial Supervisory Service (FSS) reporting center, the Financial Services Commission and the FSS will classify the cases and initiate investigations into unfair trading of virtual assets.
The types of unfair trading acts are broadly categorized as △insider trading △price manipulation △transactions using false or fraudulent means △and trading of self-issued coins by virtual asset service providers.
The investigative methods of the financial authorities include △inspection and submission requests for ledgers, documents, and items △requests for statements and questioning of suspects △on-site investigations and seizure of ledgers, documents, and items. Additionally, data investigations are conducted in parallel, including analysis of review materials from virtual asset exchanges related to suspicious transactions, analysis of on-chain virtual asset transaction data, and requests and analysis of financial transaction information.
Cases of unfair trading completed through investigation are reviewed by the Virtual Asset Investigation Deliberation Committee. The Financial Services Commission will decide on measures in five stages?accusation, notification to investigative agencies, imposition of fines, warnings, and advisories?depending on the severity of the violations revealed by the investigation results.
The Financial Services Commission stated, "From the early stages of the law’s enforcement, we plan to strictly take action against major unfair trading acts with consistency to raise market vigilance," and emphasized, "the financial authorities will fully mobilize the investigative tools and available resources provided by law to carry out a series of investigative tasks such as 'detecting clues of suspicious transactions → promptly investigating to prove unfair trading suspicions → taking strict measures,' thereby establishing a fair and transparent trading order in the virtual asset market."
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