South Korea Intensifies AI Surveillance to Combat Crypto Market Manipulation
South Korea's Financial Supervisory Service (FSS) is deploying advanced artificial intelligence to crack down on crypto market manipulation. The regulator's Virtual Assets Intelligence System for Trading Analysis (VISTA) now features an automated detection algorithm capable of identifying price manipulation without human intervention.
The new algorithm employs a sliding window grid search technique to analyze trading data across all possible sub-periods, uncovering manipulation windows that traditional methods might miss. Early tests show the system detected 100% of known manipulation cases while flagging previously undetected suspicious activity.
With a 2026 budget allocation of 170 million won ($116,000), the FSS plans significant upgrades to VISTA. The enhanced system will track coordinated trading networks, analyze abnormal patterns, process text data across thousands of crypto assets, and trace fund sources - creating a comprehensive surveillance framework for South Korea's digital asset markets.
