South Korean financial authorities have investigated 40 cases of manipulation of the crypto market since the country’s user protection law went into effect in 2024, citing more than 30 to investigative agencies.
The chairman of the Financial Services Commission shared the figures to mark the second anniversary of the law. The cases revealed 25 suspects during the two-year security operation.
Korea’s Virtual Asset User Protection Act Marks 2 Years of Enforcement
South Korea passed the Virtual Asset User Protection Act on July 19, 2024. The measure provided dedicated controllers tools punish abuse in the crypto market.
The Financial Services Commission then set up a special investigation team. Later it added digital references and improved the functionality of the additional interest rate.
This production resulted in about 40 completed investigations. Regulators have also referred more than 30 confirmed cases for investigation prosecution agencies.
“Financial officials plan to continue to promote the elimination of false trading in the commodity market, including the use of AI to improve research and analysis,” notice read it.
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The average illegal profit reached about 1.4 billion won per case. Meanwhile, eight cases various from 500 million to 5 billion won, and one won 5 billion.
The regulator also imposed penalties of 125% to 165% on illegal gains in two cases. Officials framed the results as a basis for rebuilding the market’s credibility.
However, the directors indicated that the project was not completed. They are planning to introduce account and bank account freeze powers to stop hidden money.
The procedure for reporting and awarding unfair commercial practices is also being reviewed in the second part of the legislation. Governments want to expand AI market analysis according to these dimensions.
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A note South Korea Cracks 40 Crypto Hacking Laws Since 2024 Law appeared for the first time BeInCrypto.
