Financial Authorities Fast-Track Unfair Crypto Trading Case to Prosecution

- Through the Fast Track procedure, swiftly investigating the virtual asset market unfair trading case and reporting it to prosecution for sanctions - Enhanced monitoring systems and cooperation between financial authorities and exchanges under the Virtual Asset Act, improving market transparency [Unblock Media] Recently, South Korean financial authorities rapidly investigated a cryptocurrency market unfair trading case through an emergency response procedure and promptly notified prosecutors. This instance is recognized as a crucial early case since the implementation of the 'Act on the Protection of Virtual Asset Users,' marking the first sanction against unfair trading and expected to play an important role in setting future law enforcement standards. The emergency response procedure is designed for quickly notifying prosecutors of cases with clear evidence of unfair trading without complicated procedures, facilitating swift investigations. For instance, the procedure enables the swift collection and analysis of essential documents and data required for the investigation, ensuring cases necessitating legal sanctions are promptly reported to prosecutors. This approach shortens the investigation period and allows for rapid legal action. In this case, the suspect attempted price manipulation by repeatedly submitting fake buy orders using an automatic trading program. The primary method involved submitting large-volume high-price buy orders and then canceling them before execution, misleading general investors into believing there was an inflow of buy orders. This tactic artificially manipulated the coin's price and trading volume. The financial authorities swiftly responded to this case by utilizing their self-developed analysis infrastructure, including a large-scale trading data analysis platform. Additionally, the enhanced monitoring system following the enactment of the virtual asset law has established mechanisms to detect and respond to such unfair trading at an early stage. Particularly, the strengthened cooperation system between the Financial Supervisory Service and cryptocurrency exchanges played a crucial role in resolving this case. For example, the financial authorities, in collaboration with the exchanges, monitor abnormal trading, including automated trading, in real time and operate a system that immediately reports suspicious transactions to the financial authorities along with regular data sharing and abnormal transaction detection systems. A representative of the Financial Supervisory Service stated that six additional cases of suspected unfair trading are currently under investigation. Thus, the sanctions and response procedures against unfair trading in the cryptocurrency market are being systematically operated based on legal foundations. If such measures continue, the transparency and credibility of the cryptocurrency market are expected to improve. This will play an essential role in establishing a healthy trading order within the cryptocurrency market.