South Korea’s FSS Pioneers World’s First Virtual Asset Bureau to Combat Market Manipulation

The Financial Supervisory Service (FSS) is establishing a new specialized bureau solely focused on supervising, inspecting, and investigating virtual assets. This bureau aims to be the world’s first authorized team to probe market manipulation within the virtual asset space. Discussions are underway with the Financial Services Commission to create this Digital Asset Bureau, seeking increased manpower and budget rather than merging existing departments. The bureau, expected to have at least four teams, will conduct comprehensive inspections of 36 cryptocurrency exchanges and investigate market manipulation, undisclosed information use, and fraudulent transactions. This initiative stands as a pioneering effort globally, contrasting with limited actions taken by regulatory bodies in the US and Japan. Contemplation exists to place this bureau under the Financial Consumer Protection Agency. Additionally, the Financial Services Commission is considering establishing another organization for virtual assets under its Innovation Bureau, potentially involving a transfer of tasks from the FIU’s Cryptocurrency Inspection Division.