South Korea Considers Freezing Crypto Accounts to Prevent Market Manipulation

South Korea is considering allowing authorities to freeze cryptocurrency accounts to prevent traders from moving illegal gains through market manipulation.

Key Points:

The Financial Services Commission (FSC) is exploring the power to freeze accounts without a court warrant to stop funds from being hidden in private wallets.
This approach mirrors existing tools in the stock market to block transactions if manipulation is suspected.
Techniques like front-running and wash trading can generate quick profits, which regulators aim to intercept before they vanish.
The proposal for account freezes was discussed in a closed-door meeting as part of South Korea's broader crypto regulation efforts.
New rules will require reporting details for all digital currency transfers, including those under $680, to combat tax evasion.
Future regulations may include stablecoin rules and stricter market abuse controls.
Korean banks are collaborating with tech firms to enter the stablecoin market.
The National Tax Service considers seizing crypto stored in cold wallets during tax investigations.
The FSC is contemplating requiring exchanges to compensate users for losses from hacks.
The Financial Intelligence Unit plans to impose penalties on exchanges for anti-money laundering violations.

Overall, these measures reflect South Korea's commitment to stricter oversight to protect investors and curb market manipulation in the growing crypto sector.