South Korea's Financial Services Commission is considering suspending account payments for virtual assets suspected of market manipulation.

South Korean financial authorities are studying the introduction of a "payment suspension" system in cases of virtual asset price manipulation to prevent suspects from transferring or concealing illicit gains during the investigation phase. The report states that during a routine meeting last November, the Financial Services Commission (FSC) discussed related cases and proposed referencing practices used in the capital market to combat stock price manipulation, freezing accounts suspected of manipulating virtual asset prices in advance and restricting outflows of funds such as withdrawals, transfers, and payments. The report points out that under the current system, the confiscation or recovery of illegal proceeds from virtual assets typically requires prosecution and a court order, posing a risk of assets being transferred during this period. The FSC internally believes that a payment suspension mechanism similar to that in the proposed "second phase of legislation on virtual assets" could be introduced to more effectively prevent the premature disposal of unrealized gains. Financial officials stated that because virtual assets are easier to conceal once transferred to personal wallets, such a system could help strengthen supervision and asset protection in the early stages. (NewSIS)