FSS Plans Tougher Oversight as Crypto Gating Issues Grow

Crypto News Regulation

South Korea's FSS Plans Tougher Oversight as Crypto Gating Issues Grow

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 09, 2026

Key Takeaways

FSS plans stricter crypto oversight in 2026 and shifts its focus to behavior that pushes prices away from normal market conditions;
The regulator targets coordinated manipulation, large trader activity, and “gating” that traps assets and triggers price swings;
FSS prepares new tools that detect odd price zones, link accounts, track API misuse, and spot false claims spread on social media.

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South Korea's FSS Plans Tougher Oversight as Crypto Gating Issues Grow

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South Korea’s Financial Supervisory Service (FSS) plans to tighten its reviews of the crypto market in 2026, according to a report by Yonhap, a local news outlet.

FSS Governor Lee Chang-jin told Yonhap News Agency that the regulator will look into actions that push prices away from normal market conditions. This includes organized efforts that rely on gaps in exchange systems or sudden changes in platform availability.

One of the agency’s main targets is large-volume trading by so-called whales. Sudden moves by major holders can shift prices in ways that do not match overall market trends. The FSS also plans to review cases where exchanges pause deposits or withdrawals.

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In South Korea, this is often called “gating". These pauses can trap assets on a single platform, reduce available supply, and cause price movements that do not reflect the market.

The regulator also noted that some groups use market-order APIs to coordinate trades. Others attempt to influence prices by spreading misleading claims on social media.

To support these investigations, the FSS plans to expand its automated monitoring tools. The agency wants systems that check for unusual price changes in very short time frames.

It also aims to build tools that identify related accounts involved in suspicious activity. Text-based analysis will help the agency spot coordinated online messages tied to questionable trades.

Recently, the FSS upgraded its VISTA system with an artificial intelligence (AI) algorithm that automatically detects possible crypto market manipulation. What did the agency say? Read the full story.