New Regulations Enforced to Combat Unfair Trading in Virtual Asset Market

The Financial Supervisory Service announced that the ‘Virtual Asset User Protection Act’ will be enforced starting July 19th, requiring virtual asset exchanges to constantly monitor and detect abnormal transactions to prevent unfair trading behavior in the virtual asset market. Exchanges will use a monitoring system to analyze trading data, account information, order details, and deposit/withdrawal activities to identify and report suspected unfair transactions to authorities. Unfair trading practices include the use of non-public information by insiders to trade or share undisclosed information, market manipulation through fake trades or artificially inflating market prices, and fraudulent trading by issuing false press releases, manipulating asset circulation, or controlling trade volumes to deceive market participants and realize unfair gains. To assist exchanges in complying with these requirements, the Financial Supervisory Service has established ‘Guidelines for Monitoring Abnormal Transactions’ and supports the implementation of monitoring systems.

Read More : DAXA Introduces Self-Regulatory Guidelines for Virtual Asset Exchanges Ahead of User Protection Act