FSS Vows Stricter Crypto Oversight and IT Penalties in New Policy Agenda

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Citing the need to protect investors and ensure orderly markets, South Korea’s Financial Supervisory Service has declared it will strengthen its supervision of the cryptocurrency arena and impose more severe sanctions on financial companies for IT-related accidents.

The watchdog’s annual work plan, released Monday, features scheduled probes into high-risk crypto market conduct alongside new financial penalties for technology infrastructure failures, Yonhap news agency reported.

In the domain of digital assets, the FSS stated it will carry out targeted examinations of activities that subvert market integrity. These include manipulation of prices by large-scale traders, or “whales,” and strategies such as artificially inflating the prices of tokens that have had their deposits and withdrawals halted on particular exchanges.

According to the report, additional practices facing scrutiny involve swift price-pumping operations, market manipulation executed through application programming interface orders, and the spread of untrue information on social media platforms.