South Korean regulators introduce AI algorithms to monitor cryptocurrency market manipulation

The Financial Supervisory Service of Korea has upgraded its virtual asset trading analysis intelligence system VISTA and introduced automated detection algorithms to combat improper cryptocurrency trading.

The algorithm employs a sliding window grid search technique to automatically identify potential price manipulation ranges, reducing reliance on manual investigations. Performance tests have shown that the system has successfully detected all known manipulation periods and previously hard-to-detect abnormal ranges. The Financial Supervisory Service has allocated a budget of 170 million won (approximately 116,000 USD) for AI performance upgrades in 2026. Future plans include automatically identifying networks of colluding trading accounts, analyzing abnormal trading texts of thousands of cryptocurrency assets, and tracking the sources of manipulated funds.