South Korea Enhances Crypto Regulation with New Account Freezing Powers
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 06 2026- Regulatory Power Upgrade: The Financial Services Commission (FSC) of South Korea will gain the authority to freeze accounts suspected of market manipulation, aiming to protect investors through a rapid response mechanism that significantly enhances market oversight efficiency.
- Real-Time Data Sharing: The FSC plans to establish real-time data-sharing protocols with financial institutions and virtual asset service providers to swiftly act upon detecting abnormal trading patterns, thereby reducing the risk of illicit fund movements.
- Enhanced Investor Protection: The new regulation transforms fund freezing into a proactive measure, elevating investor protection levels and is expected to attract more institutional capital into the market, bolstering the long-term credibility of crypto assets.
- Increased Compliance Burden: Domestic crypto exchanges like Upbit and Bithumb will need to invest in more advanced surveillance technology to meet new regulatory requirements, which, while increasing costs, will also help enhance market reputation and gain competitive advantages.
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.
