Crypto: How South Korea Is Using AI To Detect Crypto Market Manipulation
South Korea’s regulators are deploying AI systems to monitor crypto trading, flag manipulation and strengthen digital asset enforcement.
South Korea is transitioning crypto market surveillance to AI-driven systems, in which algorithms automatically detect suspicious trading activity, replacing manual processes.
The new detection model employs a sliding-window grid search technique, scanning overlapping time segments to spot abnormal patterns such as unusual volume surges.
Through 2026, the Financial Supervisory Service plans to enhance AI capabilities with tools to detect coordinated trading account networks and trace manipulation funding sources.
Regulators are exploring proactive intervention measures, such as temporary transaction or payment suspensions, to freeze suspicious activity early and prevent the withdrawal of illicit gains.
South Korea is advancing its cryptocurrency market oversight by shifting to AI-driven surveillance. Algorithms now perform the initial detection of suspicious activities instead of relying solely on human investigators.
As crypto trading grows faster, more decentralized and increasingly difficult to monitor manually, regulators are leveraging artificial intelligence to identify irregularities and anomalies more quickly.
Central to this evolution is the Financial Supervisory Service’s (FSS) enhanced Virtual Assets Intelligence System for Trading Analysis (VISTA). This upgrade reflects the recognition that traditional, manual, case-by-case probes can no longer keep pace with today’s dynamic digital asset markets.
This article explains how South Korea’s financial regulators are using upgraded AI systems to automatically detect crypto market manipulation, improve surveillance, analyze trading patterns and plan advanced tools. It also explores faster intervention and alignment of crypto oversight with broader financial markets.
Crypto markets produce massive volumes of data across exchanges, tokens and timelines. Manipulative tactics such as pump-and-dump schemes, wash trading or spoofing often create sudden bursts that are difficult to detect. Manually identifying suspicious periods in crypto activity has become increasingly challenging at the current market scale. As interconnected trading patterns grow more intricate, automated systems are designed to continuously scan and flag potential issues.
Source: CoinTelegraph
