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

Breaking News from Mars Finance: South Korean financial authorities are studying the introduction of a “payment suspension” system in virtual asset price manipulation cases to prevent suspects from transferring or concealing illicit gains during investigations. According to reports, during a routine meeting in November last year, the Korean Financial Committee discussed relevant cases and proposed referencing practices from the capital market concerning stock price manipulation. They suggested taking preemptive freezing measures on accounts suspected of manipulating virtual asset prices to restrict fund outflows such as withdrawals, transfers, and payments. The report points out that under the current system, confiscation or recovery of illegal proceeds from virtual assets usually requires an investigation by prosecutors and a court order, which poses a risk of asset transfer during this period. Internal members of the Financial Committee believe that the upcoming “Second Phase Legislation on Virtual Assets” could consider introducing an account payment suspension mechanism similar to the Capital Market Act to more effectively prevent unrealized gains from being disposed of prematurely. Officials from the financial authorities stated that since virtual assets are easier to conceal once transferred into personal wallets, such a system could help strengthen early-stage regulation and asset preservation.