Korean regulatory authorities plan to freeze accounts involved in manipulation during the investigation phase.

2026-01-06 16:12:47

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BlockBeats News, January 7 — South Korea’s financial regulators are currently evaluating the introduction of a “Preemptive Freeze” mechanism, which would allow temporary freezing of relevant accounts before suspected price manipulation-related crypto transactions are cashed out. The Financial Services Commission (FSC) is studying a trading suspension system, aiming to align crypto enforcement standards with those of the stock market to address current issues of requiring court orders and delayed enforcement.

This discussion comes as South Korea advances to the second phase of crypto legislation, with a focus that may include stablecoins and market manipulation. If implemented, regulations will shift from post-event accountability to real-time intervention, increasing scrutiny of high-frequency, automated trading, and short-term abnormal volatility, significantly tightening the market enforcement environment.

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