AI surveillance marks new phase for South Korea crypto markets

A report from Cointelegraph says South Korean regulators are stepping up oversight of the domestic cryptocurrency market, signaling a faster, more coordinated approach to detecting suspicious trading activity amid renewed volatility. The Financial Supervisory Service said it was reviewing sharp price movements in the ZKsync token listed on Upbit after extreme volatility concentrated around a system maintenance window, and could escalate the review into a formal investigation.

Cointelegraph reached out to Upbit operator Dunamu for comment but did not receive a response before publication. The FSS has expanded its use of artificial intelligence to monitor digital asset trading, upgrading its in-house crypto intelligence system to automatically detect potential manipulation across different time frames.

The watchdog said the system reduces reliance on manual investigations and enables earlier detection of suspicious trading windows, with planned upgrades to detect coordinated trading networks and trace the origin of funds.

South Korea