"SNS Rumors and False Information Distribution Will Be Strictly Punished"
On the 15th, the Financial Services Commission and the Financial Supervisory Service urged users to exercise caution amid increased volatility in the virtual asset market linked to the recent U.S. presidential election.
Recently, volatility in the domestic virtual asset market, including Bitcoin, has significantly increased. As of the 15th, the price of Bitcoin rose 27.8% compared to the end of October, and the altcoin index surged 26.7%.
Deposits also increased by approximately 2.4 trillion KRW compared to the end of October. Trading volume more than doubled compared to the end of October.
In addition to Bitcoin, trading volume surged mainly in some meme coins. There were also signs of an expansion of so-called "Kimchi Premium" items, where prices are higher than overseas markets.
On the 7th, the financial authorities issued a guidance letter to virtual asset exchanges, requesting strengthened monitoring in preparation for increased market volatility. They also activated a hotline to enhance responses to abnormal transactions with virtual asset exchanges.
The financial authorities emphasized, "Special caution is required when trading virtual assets designated as 'caution trading items (short-term surge, etc.)' and 'trading advisory items (preliminary stage before termination of trading support)' at virtual asset exchanges."
They added, "We plan to promptly investigate unfair trading cases reported by virtual asset exchanges and crack down on rumors, false information dissemination, and related front-running using social networking services (SNS) amid the recent overheated market conditions."
Furthermore, they stated, "If illegal activities are confirmed, strict measures will be taken. In addition to sanctions for unfair trading, we will also review the appropriateness of criteria for designating caution items and user trading restrictions to protect users."
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