Korean Regulators Consider Payment Suspension Mechanism for Crypto Price Manipulation

Korean Regulators Consider Payment Suspension Mechanism for Crypto Price Manipulation

South Korea’s Financial Services Commission is exploring a 'preemptive freeze' mechanism to block suspected crypto manipulators' accounts before profits are cashed out, in line with phase-two crypto legislation.

Fact Check
The assessment is based on strong, consistent, and direct evidence from multiple high-authority sources. Two primary reports from major South Korean news agencies (with authority scores of 0.90 and 0.85) explicitly state that financial authorities are considering and positively considering a 'payment suspension' (지급정지) system. The purpose of this mechanism is clearly articulated: to freeze accounts and prevent the withdrawal of profits from suspected cryptocurrency price manipulation. This core claim is further supported by contextual evidence from other credible financial news outlets, which confirm that key regulators like the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU) are actively focused on cracking down on market manipulation ('시세조종'). While several sources discuss broader crypto regulations without mentioning this specific mechanism, none of them contradict the claim. The highest authority source, the National Assembly's legislative records system, would be the definitive source for a formally proposed bill; its lack of mention in the provided summaries is consistent with the reporting that the mechanism is currently in the 'consideration' phase, rather than being formally legislated. The low-authority source also directly echoes the claim, which, while not evidence in itself, aligns with the information from credible reports. The convergence of direct reporting from highly credible sources, strong supporting context, and a lack of conflicting evidence makes the statement highly likely to be true.
Summary

South Korea’s Financial Services Commission is considering a 'preemptive freeze' mechanism to temporarily block accounts suspected of crypto price manipulation. The system would allow authorities to freeze accounts before profits are cashed out, aiming to strengthen crypto enforcement as part of the country’s phase-two crypto legislation.

Terms & Concepts
  • Payment suspension mechanism: A regulatory tool allowing temporary freezing of accounts suspected of illegal activities before a formal legal process begins.
  • Virtual asset: A digital representation of value that can be traded or transferred electronically, commonly referring to cryptocurrencies and tokens.
  • Second-phase virtual asset legislation: A forthcoming South Korean regulatory framework intended to expand oversight and enforcement powers for crypto-related activities.