As crypto unfolds innovative services, firms and platforms are actively exploring ways to offer digital asset services in different ways. However, market manipulations, other illegal crypto deals, and weak structures are vehemently covering the sector, given the recent accidental $44 billion Bitcoin giveaway.
The Financial Supervisory Service (FSS) of South Korea unveiled its oversight strategy for this year, specifically aimed at clamping down on unfair crypto trading activities and market manipulation.
An accidental giveaway causes chaos
Recently, Bithumb, a South Korea-based crypto exchange, accidentally credited users with nearly 620,000 Bitcoin. The platform gave 695 users nearly $44 billion USD worth of BTC during a promotional reward event, instead of crediting a small cash price. This incident happened on February 6, and South Korea’s FSS formally unveiled the 2026 oversight strategy today.
For the FSS, the accidental giveaway due to input error is a structural weakness in crypto systems. Regulators cited that there are several flaws in blockchain management and internal control mechanisms. The firm has, however, apologized for the mistake.
South Korea to integrate AI into its crypto oversight plan
South Korea is fairly advanced when it comes to regulating the blockchain industry, with several crypto activities developments taking place in the country, along with the support of the government. Major exchanges like Upbit have initiated a huge number of transactions, serving the crypto needs of users in the country.
The country already has positive crypto regulations, and now, the authorities have come up with stricter rules to protect the nation’s financial sector and investors, to prevent crypto platforms from offering illegal services. The FSS will execute advanced investigations into market manipulations and suspicious trading behaviors.
Several crypto trading platforms use AI tools to match the price of crypto and initiate trading. However, South Korea is flipping the role of AI in detecting flaws and illegal trading activities.
The new regulatory oversight includes using AI tools that can instantly monitor unusual price surges, price manipulations, trading activities, and identify red flags.
