South Korea Weighs Freezing Unrealized Crypto Gains to Crush Price Manipulation Before Cash-Outs
Key Takeaways:Regulators Target Unrealized Profits, Not Just Cashed-Out GainsBorrowing Enforcement Tools From the Stock Market
The proposed crypto account freeze would closely mirror powers already available in South Korea’s equity markets.
In April last year, amendments to the Capital Markets Act introduced payment suspension orders for stock manipulation cases. Those tools were used in a high-profile enforcement action last September, when regulators froze 75 accounts linked to a large-scale stock price rigging scheme.
Read More: South Korea Warns ETFs’ Crypto Exposure Too High, Coinbase, MicroStrategy in the Crosshairs
The proposal is applicable in the changing crypto framework in South Korea. The initial stage of legislation governing digital assets in the country was extremely user protection-oriented, exchange protection-oriented, and disclosure-oriented.
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