South Korea Deploys AI-Powered Crypto Surveillance System Amid Growing Regulatory Pressure
South Korea is taking steps to crack down on cryptocurrency violations using artificial intelligence and new legislation. The Financial Supervisory Service (FSS) has developed an AI-powered surveillance framework that can detect suspicious crypto trading in real-time.
The system combines data analysis, online public information analysis, and automated in-depth analysis of suspicious assets. It can identify suspected short-term price manipulation cases, including dramatic price fluctuations at specific times, surges in price for restricted deposits and withdrawals, or artificial inflation of trading volume.
Lawmakers have also introduced a bill to expand the powers of the country's Financial Intelligence Unit (FIU) to investigate unregistered crypto businesses. The proposed amendment would allow anyone to report suspected violations of the law to the FIU, and authorize the agency to take necessary measures such as investigation and analysis.