The Financial Services Commission of South Korea plans to study the suspension of account payments for virtual assets suspected of market manipulation

The South Korean financial authorities are studying the introduction of a "payment suspension" system in cases of virtual asset price manipulation to prevent suspects from transferring or hiding illicit gains during the investigation phase.

According to reports, the Financial Services Commission of South Korea proposed during a regular meeting last November to consider practices in the capital market regarding stock price manipulation, taking preemptive freezing measures on accounts suspected of manipulating virtual asset prices to restrict withdrawals, transfers, and payment outflows. The report pointed out that under the current system, the confiscation or recovery of illicit gains from virtual assets usually requires a prosecutor's investigation and a court warrant, which poses a risk of assets being transferred during this period. Internally, the Financial Services Commission believes that a payment suspension mechanism similar to that in capital market law could be introduced in the proposed "second phase of virtual asset legislation" to more effectively prevent unrealized gains from being disposed of prematurely. Relevant officials from the financial authorities stated that since virtual assets are easier to conceal once transferred to personal wallets, such a system may help strengthen regulation and asset preservation in the early stages.