South Korea Considers Payment Freeze on Virtual Assets to Prevent Manipulation
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Regulatory Measures Exploration: South Korea's Financial Services Commission is considering implementing a payment freeze on virtual assets to prevent price manipulation, reflecting stock market regulatory practices aimed at enhancing market integrity and investor confidence.
- Legislative Progress: The proposal is part of the 'second-phase virtual asset legislation' focusing on tightening regulations to prevent illicit activities, with FSC commissioners generally supporting this new approach despite no specific individual comments.
- Increased Market Transparency: Experts anticipate that regulatory changes could enhance market transparency, particularly concerning crypto exchanges, addressing the current inability to block transfers from exchanges to personal wallets, a key concern for authorities.
- Learning from Stock Market Practices: The proposal resembles the stock price manipulation account freeze established under amendments to the Capital Markets Act, with historical data indicating that stricter regulations have previously reduced unlawful trading activities and bolstered investor confidence.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
