South Korea Arms AI to Catch Crypto Market Manipulation

Crypto News Regulation

South Korea's FSS Arms AI to Hunt Down Crypto Market Manipulation

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 02, 2026

Key Takeaways

South Korea’s FSS upgraded its VISTA system with an AI algorithm that automatically detects possible crypto market manipulation;
The new sliding-window search method scans all trading periods to catch subtle or short manipulations that humans might overlook;
The FSS set aside ₩170 million for 2026 to expand AI tools that track linked accounts, analyze trading texts, and trace suspicious funds.

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South Korea's FSS Arms AI to Hunt Down Crypto Market Manipulation

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South Korea’s financial regulator is increasing its reliance on artificial intelligence (AI) to monitor cryptocurrency trading.

The Financial Supervisory Service (FSS) announced improvements to its Virtual Assets Intelligence System for Trading Analysis (VISTA). The updated system now includes a new algorithm that automatically detects potential manipulation in trading data.

The new feature uses what the FSS calls a sliding-window grid search. In simple terms, the system checks every possible period in the trading data to identify unusual price movements.

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Previously, analysts had to manually select specific timeframes to examine, which could make short or subtle manipulation harder to spot.

According to the FSS, testing the new system on completed cases produced positive results. It successfully found all previously confirmed manipulation periods and also revealed additional suspicious moments that traditional methods had missed.

To continue improving its capabilities, the agency has set aside 170 million won (around $116,000) for further upgrades in 2026. The plan is to roll out new tools in stages over the next two years.

Future updates will allow the system to automatically detect groups of linked trading accounts, analyze text related to unusual trading behavior across many cryptocurrencies, and trace the sources of funds used in suspicious activities.

Meanwhile, South Korea’s Financial Services Commission (FSC) is moving toward tighter rules for cryptocurrency exchanges. What did the agency say? Read the full story.