South Korea's New Crypto Law Spurs 30 Manipulation Probes

The law requires virtual asset service providers to hold customer assets in cold storage and operate through real-name verified bank accounts. That eliminates anonymized banking workarounds, the FSC said.

The country is also considering preemptive account freezing for suspected manipulators without a standard warrant. That proposal surfaced in January 2026 and would give authorities the ability to freeze assets before a full investigation concludes.

South Korea ended a nine-year ban on corporate crypto trading in 2025, allowing institutional participation with a 5% equity cap.