South Korean Financial Regulator Considers Introducing "Payment Freeze" to Control Crypto Asset Price Manipulation in Early Stage

BlockBeats News, January 6th — According to NewSIS, the Financial Services Commission of South Korea is actively considering the introduction of a "Payment Freeze" system to early-stage freeze accounts suspected of manipulating cryptocurrency prices, preventing suspects from transferring or concealing illegal gains during investigations. This measure is similar to the stock price manipulation account freeze system introduced through an amendment to the Capital Market Act in April last year.

During a Financial Services Commission meeting in November last year, several commissioners expressed their support for this, suggesting that a similar mechanism should be included in the cryptocurrency second-phase bill. South Korean financial authorities pointed out that cryptocurrency assets are particularly easy to hide after being transferred to personal wallets. Currently, regulations can only prevent funds from entering or leaving trading platforms, but they can still be withdrawn to financial institutions. The new measure will help promptly prevent the hiding of illicit gains and provide assurance for subsequent recovery.