Korea Cracks Down on Crypto with AI-Powered Surveillance and New Laws

South Korea is taking steps to strengthen its oversight of the cryptocurrency market. The country's financial regulator, the Financial Supervisory Service (FSS), has launched an AI-powered surveillance system designed to detect and analyze suspicious trading in real-time. The system uses a combination of data analysis, online public information analysis, and automated in-depth analysis to identify abnormal transactions.

The FSS's new system builds on its existing VISTA platform, which was introduced in January to investigate suspected price manipulators and unfair digital asset trading. However, the expanded system now allows for real-time monitoring and connection of alert, supporting information, and preliminary review in one workflow.

In addition to the AI-powered surveillance system, lawmakers are proposing a bill to expand the powers of the country's Financial Intelligence Unit (FIU) to investigate unregistered cryptocurrency businesses. The proposed amendment would allow anyone to report suspected violations to the FIU, which could then take necessary measures such as investigation and analysis or request an investigation from other agencies.