"Half of Those Subject to Abnormal Transaction Prevention Measures at Virtual Asset Exchanges Are in Their 20s and 30s"

More than half of those subject to abnormal transaction prevention measures at virtual asset exchanges are in their 20s and 30s.

On May 21, the Financial Supervisory Service announced that, from July last year?when the "Act on the Protection of Virtual Asset Users" was introduced?until the end of last year, 52.5% of abnormal transaction prevention measures at virtual asset exchanges involved individuals in their 20s and 30s.

As virtual assets have gained popularity as a means of financial investment among people in their 20s and 30s, this age group now accounts for about half of all users. As of the end of last year, users in their 30s or younger made up 47.6% of the virtual asset market.

However, the Financial Supervisory Service found that, despite the implementation of the virtual asset law prohibiting unfair trading practices, many in this group are not fully aware of the regulations and continue to trade according to previous practices.

The Financial Supervisory Service identified several major types of unfair trading with a high risk of criminal penalties for users, including those in their 20s and 30s: high-priced purchases using APIs, wash trading and collusive trading, and the use of undisclosed information.

High-priced purchases using APIs refer to the practice of submitting a large number of high-priced buy orders through an API in a short period at a specific time. This causes a sharp increase in the price and trading volume of a virtual asset, and once buying momentum builds, the holder quickly sells off their assets.

Wash trading involves first accumulating a virtual asset and then repeatedly matching one's own buy and sell orders to create the false appearance of active trading. Collusive trading, on the other hand, occurs when two or more parties prearrange the price, quantity, or timing of trades and then match buy and sell orders to make trading appear active.

In the case of using undisclosed information, an individual obtains important information in advance from an insider that a particular virtual asset will be supported (listed) on major domestic or international exchanges. The individual then purchases the asset on other exchanges where it is already supported, and sells it after the official announcement causes the price to rise.

The Financial Supervisory Service explained that if these activities are found to constitute unfair trading through investigation, they may be reported to law enforcement agencies and subject to criminal penalties and fines. The agency emphasized, "Even if you did not lead the scheme, you may be considered an accomplice if you participated in prearranged trading with others. Simply not knowing the law and trading according to previous practices does not affect the determination of a legal violation."