South Korea's FSC Considers Freezing Suspicious Crypto Accounts to Curb Manipulation
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 11 2026- Regulatory Mechanism Expansion: South Korea's Financial Services Commission (FSC) is considering implementing an account freezing mechanism in the cryptocurrency sector to combat market manipulation, similar to previous regulatory measures in the stock market, aimed at enhancing control over digital assets.
- Historical Case Reference: The FSC previously froze 75 accounts in the stock market, successfully preventing approximately 40 billion KRW (~$27M) in unrealized profits, providing a precedent for applying account freezes in the crypto market.
- Industry Reactions: Industry experts have expressed concerns over the account freeze measures, suggesting that excessive government control could inadvertently impact law-abiding crypto holders and that the measures lack in-depth regulatory reform for centralized exchanges.
- Potential Impact: If the proposal is implemented, it could affect cryptocurrency accounts linked to price manipulation, particularly high-liquidity assets like Bitcoin and Ethereum, leading investors to shift towards self-custody solutions for higher liquidity and security.
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.
