South Korea’s financial authorities have referred 30 suspected market manipulation cases to prosecutors, the first major enforcement action under the Act on the Protection of Virtual Asset Users, which took effect on July 1, 2024.

What the law actually does

The Act on the Protection of Virtual Asset Users is South Korea’s first comprehensive crypto-specific legislation. It explicitly bans unfair trading practices, including market manipulation, wash trading, and coordinated price pumping schemes.

Beyond the manipulation ban, the law mandates that virtual asset service providers hold substantial portions of customer assets in cold storage. Exchanges must also operate through real-name verified bank accounts,…