South Korea's first case of market manipulation since the enactment of the Virtual Currency User Protection Act is reported to prosecutors

South Korea's Financial Services Commission has indicted the first suspect arrested for cryptocurrency price manipulation since the implementation of the Virtual Currency User Protection Act in July last year, reported News 1.
The government plans to call for caution when investing in virtual currencies, the value of which has soared, strengthen the system for investigating unfair trading, and introduce a system for listing and publicly disclosing virtual currencies.
On the 16th, the Financial Services Commission passed a resolution to indict suspect A, who engaged in unfair cryptocurrency trading (market manipulation), to the prosecution.
This is the first case of unfair conduct being dealt with through a formal investigation procedure since the Virtual Currency Act came into force in July last year.
According to the Financial Services Commission, it was discovered that Suspect A had made hundreds of millions of won (tens of millions of yen) in illegal profits in one month. Suspect A is suspected of using a specific virtual currency.
After making a large purchase, they repeatedly placed buy orders in a short period of time to artificially inflate the price and trading volume. The increase in net buys for the relevant virtual currency led to investors being deceived into buying when the price rose.
The Financial Services Commission warned that if people buy cryptocurrencies after their trading volume and prices have soared, the price may suddenly fall without a teaser, so they should be careful.
The Financial Services Commission said, "As virtual currency transaction costs have increased recently and prices have become more volatile, there is a risk that unfair trading practices will increase. We will improve our unfair trading investigation system and investigate virtual
"We will encourage currency exchanges to strengthen their monitoring of abnormal transactions," he said. "We will also consider improving the structure of the virtual currency market, such as listing and public announcement systems, to ensure a transparent virtual currency market order."
" he said.