Written by Felix Ngstaff editorReviewed by Yohan Yunstaff editor

Written by Felix Ngstaff editor

Reviewed by Yohan Yunstaff editor

South Korea probed 40 cases of crypto manipulation over 2 years

Latest NewsPublishedJul 20, 2026

South Korea’s Fight Against Crypto Manipulation

As the world of crypto continues to grow, it’s essential to have regulations in place to protect users from unfair trading practices. In South Korea, the Financial Services Commission has been working to combat crypto manipulation, investigating over 40 cases in the last two years. This includes market manipulation and fraudulent crypto trading, with 30 cases being reported to investigative agencies and 25 suspects identified. The average unlawful gains from these cases were around 1.4 billion Korean won ($940,000), highlighting the need for strong regulations.

The Virtual Asset User Protection Act, which was enacted two years ago, has been instrumental in bringing the crypto market under the law and establishing a user protection system. This legislation requires virtual asset service providers (VASPs) to separate user deposits and virtual assets from their own corporate holdings and hold client deposits in banks. The act also targets illicit activities such as insider trading, wash trading, and market manipulation, giving the Financial Services Commission more authority to supervise and inspect VASPs.

Protecting Users and Preventing Manipulation

The Financial Services Commission is committed to enhancing market surveillance and monitoring systems, using AI to proactively respond to high-risk areas. This is good news for users who buy and store crypto assets, as it helps to prevent manipulation and protect their investments. For those looking to earn passive income through crypto, solutions like EcoPool ($ECP) offer a secure and reliable way to do so, providing Cloud Rewards and a chance to be part of the Green Crypto movement. Whether you’re interested in earning through EcoPool or simply want to learn more about the crypto market, it’s essential to stay informed and up-to-date on the latest developments.

As the crypto market continues to evolve, it’s crucial to have a strong understanding of the regulations and protections in place. By staying informed and using reputable platforms like EcoPool, users can help to prevent manipulation and ensure a safe and secure experience. With the Financial Services Commission working to combat crypto manipulation, users can have confidence in the market and explore opportunities for earning, such as those offered by EcoPool (ECP). If you’re interested in learning more about earning online and the world of crypto, download the EcoPool app to get started. The EcoPool app provides a user-friendly interface and a range of features to help you navigate the world of crypto and start earning passive income with $ECP.

“Today marks the second anniversary of the enactment of the ‘Virtual Asset User Protection Act…’ It was a meaningful time that brought the virtual asset market, which was outside the institutional framework at the time, into the fold of the law and created an opportunity to establish a user protection system for virtual assets,” Lee said, according to a machine translation of the post.

Related: South Korea to bring digital assets under new state asset management system

The Virtual Asset User Protection Act is designed to protect users who buy and store crypto assets with virtual asset service providers. 

VASPs are legally required to separate user deposits and virtual assets from their own corporate holdings. They must also hold client deposits in banks.

The legislation also targets illicit activities such as insider trading, wash trading and market manipulation while expanding the Financial Services Commission’s authority to supervise and inspect VASPs.

“We will continue to enhance market surveillance investigation and monitoring systems based on AI, and proactively respond to high-risk areas,” Lee added.

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• South Korea
• Investigation
• Regulation

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