South Korea is set to launch a Bureau of Virtual Assets dedicated to monitoring price manipulation.

The South Korean Financial Supervisory Service (FSS) This new Bureau of Virtual Assets will focus on comprehensive oversight, including investigatory powers to address and curb instances of market manipulation concerning virtual assets.

The newly formed Bureau is expected to play a pivotal role in implementing regulations under the ‘Virtual Asset User Protection Act’ that will come into effect in early 2024, with full inspections of virtual asset businesses anticipated to begin in the latter part of the year. Financial Services Commission ( FSC) The agency will also check whether virtual asset companies are prepared to comply with legal standards.

Currently, there are 36 registered virtual asset entities operating in South Korea, such as exchanges, wallets, and custody services, including the major 'Big 5' exchanges that will come under the FSS's examination. Unlike the previous Financial Intelligence Unit (FIU), the new Bureau will focus on ensuring asset management practices, user protections, and transaction integrity.

Beginning in July 2024, the Bureau will also investigate unfair trading behaviors, such as market manipulation and insider trading, marking a significant first step in monitoring these activities within the virtual asset space.

However, there may be delays, as the FSS is still in the process of establishing these investigative frameworks.

Global Initiatives in Virtual Asset Investigation

Outside South Korea, the United States' Securities and Exchange Commission (SEC) is actively conducting investigations into market practices, including scrutinizing the use of undisclosed information.

Other countries are also beginning to define their regulatory processes to create frameworks that recognize and adapt to the diverse functionalities of digital currencies. In a bid to enhance regulatory clarity, the UK government has published a consultation document outlining intentions to formalize regulations surrounding cryptocurrency within the next year. In 2021, the UK adopted the Decentralized Ledger Technology Act, establishing a legal framework for securities associated with blockchain. Meanwhile, the European Union is working towards enacting the Market in Crypto Assets regulations (MiCA) to encompass all digital assets not yet addressed by existing laws.

Countries like Australia and Brazil are developing their own regulatory frameworks to cater to digital assets.

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Switzerland Alisa is a passionate journalist at Cryptocurrencylistings, focusing on cryptocurrency, zero-knowledge proofs, investments, and the vast universe of Web3. With a sharp eye on emerging trends, she offers insightful and engaging coverage in the fast-evolving domain of digital finance.

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