South Korea Hunts for Fraudulent Crypto Trading as Rules Tighten

South Korean regulators are increasing pressure on local crypto exchanges to root out questionable trading, part of efforts to improve investor protection with a new digital-asset law that takes effect later this month.

The Financial Supervisory Service is setting up a system to monitor for unusual crypto trading activity, the agency said in a statement on Thursday. Exchanges are advised to feed data and information into the system to ensure compliance with the legislation that becomes active on July 19, it added.

Red flags include trades outside of normal volume and price ranges, big transactions and unusually slow execution, according ...