Financial Supervisory Service Strengthens Crypto Transaction Monitoring

The Financial Supervisory Service (FSS) announced it will strengthen oversight of abnormal transactions in the virtual asset (digital asset) market. It has added new categories to its prevention measures, including 'ghost orders,' 'concentrated trading,' and 'excessive corrections.' The FSS stated this expansion aims to address vulnerabilities in the digital asset market due to price distortions and high volatility.

Under the updated framework, repeat offenders will face escalating restrictions: 5 days for a first offense, 10 days for a second, and one month for a third. The agency also plans to enhance warnings about potential criminal penalties and improve investor protection by expanding market alerts into three tiers (investment attention, warning, and risk).

The FSS is building an advanced monitoring system called ORBIT to collect and analyze digital asset price, quote, and execution data in real time. It will further strengthen its infrastructure for market surveillance while preparing for the upcoming Digital Asset Basic Law by establishing regulatory frameworks for listing, disclosure, and cybersecurity.