South Korea’s Financial Services Commission is considering implementing a payment freeze on virtual assets to prevent price manipulation, discussed during a November 2025 meeting in Seoul.
The proposed measure aims to curb illicit gains, reflecting stock market practices and affecting the broader cryptocurrency market’s integrity and investor confidence.
South Korea’s Financial Services Commission is taking initiative against cryptocurrency price manipulation by exploring regulatory measures comparable to those in the stock market.
The proposed regulations are designed to enhance market integrity and transparency by preventing illicit activities and limiting opportunities for manipulation within crypto exchanges.
South Korea’s Bold Move Against Crypto Manipulation
South Korea’s Financial Services Commission (FSC) is exploring methods to control cryptocurrency price manipulation. A proposal suggests a “payment freeze” on accounts linked to suspected manipulation, aligning with stock market practices from the Capital Markets Act.
The proposed measures are part of the “second-phase virtual asset legislation,” focusing on tightening regulation to prevent illicit activities. Although no specified individuals have commented, FSC commissioners support this new approach to strengthen existing crypto legislation.
Proposed Freeze Sparks Crypto Exchange Concerns
Financial markets have shown interest in understanding the full implications of these measures, particularly on crypto exchanges. The potential freeze aims to address the current inability to block cryptocurrency transfers from exchanges to personal wallets, a key concern for authorities.
Experts anticipate regulatory changes could lead to increased market transparency. This action brings South Korea’s crypto laws closer to those governing stock exchanges, emphasizing the prevention of concealment of unrealized gains and illegal activities in virtual asset markets.
Crypto Regulation Inspired by Stock Market Practices
The current proposal resembles South Korea’s stock price manipulation account freeze, established under amendments to the Capital Markets Act. Similar strategies in stock markets have reduced unlawful trading activities and increased confidence among investors.
While no specific expert analysis from Kanalcoin is available, the financial community suggests that implementing these measures could stabilize the market by reducing manipulation opportunities. Historical data supports that stricter regulations have previously enhanced market integrity.
“Since virtual assets can be more easily concealed once transferred to personal wallets, such a system could help enhance early-stage regulation and asset preservation,” said Financial Services Commission Officials, South Korea’s Financial Services Commission (FSC).
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