Virtual Asset Exchanges Establish 24-Hour Monitoring Unit for Abnormal Trading Including Price Manipulation

Serious Issue Reported to Financial Authorities
Direct Report to Investigative Authorities if Necessary

Virtual asset exchanges such as Upbit and Bithumb have established abnormal transaction monitoring organizations and are monitoring all items 24 hours a day. When abnormal transactions are detected, the exchanges take internal measures and conduct reviews, and report serious matters to financial authorities. They also plan to directly report to investigative authorities if necessary.

Seoul Gangnam-gu Upbit Lounge Electronic Display / Photo by Jinhyung Kang aymsdream@

According to the virtual asset industry on the 15th, virtual asset exchanges established permanent abnormal transaction monitoring organizations internally in July in line with the enforcement of the "Act on the Protection of Virtual Asset Users, etc." These organizations monitor abnormal transactions for all trading items 24 hours a day and review and investigate detected abnormal transactions.

Upbit, the largest virtual asset exchange, established a dedicated operational organization called the Market Surveillance Office in the first half of this year for abnormal transaction monitoring. The Surveillance Office, a separate organization under the CEO, has developed its own "Upbit Market Surveillance System (UMO)" to detect abnormal transaction items. To prevent unreasonable influence, the list is managed confidentially, and to ensure independence, the results of abnormal transaction reviews are reported to the CEO after finalization.

Bithumb also created a Market Surveillance Office ahead of the enforcement of the Virtual Asset User Protection Act. Under it, the Abnormal Transaction Monitoring Team and Abnormal Transaction Review Team detect abnormal transactions and monitor and review detected items. Bithumb has a regulation that includes at least one external member in the Market Surveillance Committee, which is responsible for important decision-making related to abnormal transaction monitoring. The committee chairperson is the CEO, and the compliance officer, head of legal affairs, and head of the Market Surveillance Office participate.

Coinone operates a permanent abnormal transaction monitoring committee chaired by the risk officer, including the compliance officer, reporting officer, and head of the legal team. Exchanges focus on monitoring rapid price fluctuations, sudden increases in trading volume, sudden increases in deposit volume, and price differences to detect market manipulation or insider trading. If judged as an abnormal transaction, measures such as verbal or written caution and warning, service usage restrictions, and suspension are taken. After internal review, if deemed necessary, reports and notifications are made to investigative agencies or financial supervisory authorities.