South Korea Mulling Account Freezes for Traders Manipulating Crypto Market: Report

Group 1 - South Korea's authorities are considering the ability to freeze cryptocurrency accounts to prevent traders from moving profits gained through market manipulation [1][2] - The Financial Services Commission (FSC) is exploring a system to block transactions early if market manipulation is suspected, as current procedures require a court warrant which can delay action [2][3] - The proposed measures are similar to existing tools in the stock market that prevent cashing out illegal gains, aiming to enhance regulatory intervention and protect investors [3][5] Group 2 - A closed-door meeting in November discussed the proposal and reviewed the first case of crypto price manipulation under new rules effective from April 2025 [4] - South Korea plans to tighten rules for digital currency transfers, requiring reporting of sender and receiver details for all transactions, even those under 1 million won ($680), to combat tax evasion [4][6] - The FSC is also considering requiring exchanges to compensate users for losses from hacks or system failures, indicating a shift towards greater accountability in the crypto market [7]