South Korea Probed 40 Crypto Cases, Identified 25 Suspects

“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.

The law requires virtual asset service providers to separate user deposits and virtual assets from their own corporate holdings and hold client deposits in banks. It also targets insider trading, wash trading and market manipulation, giving the FSC more authority to supervise and inspect VASPs.

Lee added that his agency will continue to enhance market surveillance and monitoring systems using AI and respond to high-risk areas.