South Korea Mulls Freezing Unrealized Crypto Gains to Curb Manipulation

South Korea's Financial Services Commission (FSC) is reviewing the introduction of a payment suspension system to preemptively freeze crypto accounts suspected of price manipulation, mirroring tools used in the stock market. Currently, authorities face delays obtaining court warrants to freeze assets linked to crypto manipulation, allowing suspects time to conceal funds generated through tactics like front-running and wash trading. The FSC argues for earlier intervention due to the ease of transferring crypto assets. This proposal is part of a broader regulatory tightening aimed at aligning crypto standards with traditional finance, following previous measures like extending account freezes for unfair trading in the stock market and warnings from the National Tax Service regarding cold wallet seizures for tax evasion.

(Source：Cointelegraph)