TechFlow news, on January 16, according to Cointelegraph, the South Korean Financial Services Commission (FSC) reported the first unfair trading case since the implementation of the Virtual Asset User Protection Act. The law, effective from July 2024, requires local virtual asset service providers (VASPs) to report suspicious transactions and investigate patterns of unfair trading.
According to FSC, the suspect manipulated the market using a "pump and dump" scheme—artificially inflating the price of a cryptocurrency by placing multiple buy orders, then selling off large quantities of assets previously acquired. The entire manipulation process typically completed within 10 minutes, causing sharp price fluctuations and generating hundreds of millions of won in illegal profits over one month.
The FSC stated that, given the continuous growth in cryptocurrency trading volume, regulators will further enhance investigative systems, promote market monitoring by VASPs, and consider improvements to market structure to ensure transparency and fairness in trading.
