South Korean regulators are increasing oversight of the cryptocurrency market to detect suspicious trading amid volatility. The Financial Supervisory Service is reviewing sharp price movements in the ZKsync token on Upbit and may launch a formal investigation. Regulators aim to strengthen systems and expectations for exchanges operating as critical infrastructure.

South Korea’s Financial Supervisory Service is expanding the use of artificial intelligence to monitor digital asset trading for potential manipulation. The upgraded system automates detection across different time frames, reducing reliance on manual investigations. Regulators are planning tools to detect coordinated trading networks and trace the origin of funds used in suspected manipulation.

Courts in South Korea are applying criminal penalties under crypto investor protection laws. The Seoul Southern District Court sentenced a crypto executive to three years in prison for market manipulation involving a token on Bithumb. The executive engaged in high-price buying, low-price selling, and deceptive buy orders.

The surveillance and enforcement efforts in South Korea signal a shift towards faster intervention in the cryptocurrency market. Regulators are taking steps to detect and prevent market manipulation through technological upgrades and criminal penalties. The focus is on maintaining integrity and transparency in the digital asset trading space.

Read more at Cointelegraph: AI Surveillance Marks a New Phase for South Korea’s Crypto Markets