South Korea's FSC Considers Account Suspension and Whistleblower Rewards for Digital Asset Market

According to South Korea's Financial Supervisory Commission (FSC), on July 20, the regulator is reviewing the introduction of account suspension and whistleblower reward systems in the Digital Asset Act to combat market manipulation and unfair trading practices.

The move comes as the FSC marks two years since the Virtual Asset User Protection Act took effect in July 2024. Over this period, the regulator completed investigations into approximately 40 cases and referred over 30 to law enforcement, with the majority involving market manipulation schemes. Illicit gains averaged 1.4 billion won per case, with eight cases exceeding 5 billion won and one surpassing 50 billion won.