Multiple technical, onchain and exchange-traded product data points suggest $1.12 was the generational bottom for XRP. Is it time for a trend reversal?
South Korea Ends 9-Year Corporate Crypto Ban Under Strict New Rules
Key takeaways
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South Korea is ending a nine-year ban on corporate crypto trading, allowing listed entities and professional investment companies to reenter the market under a regulated framework.
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Corporate participation will be tightly controlled, with investments capped at 5% of annual equity capital and limited to the top 20 cryptocurrencies traded on regulated domestic exchanges.
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Institutional entry may gradually improve liquidity and market structure, but strict limits mean large capital inflows from corporate treasuries are unlikely in the short term.
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Compared with the US, the EU, Japan and Hong Kong, South Korea is taking a more cautious path by allowing access while restricting scale to manage systemic and reputational risks.
After a nine-year break, South Korea is set to reintegrate corporations into its cryptocurrency market. The Financial Services Commission (FSC) has established new protocols allowing listed entities and professional firms to resume trading, effectively terminating the 2017 prohibition.
This move is part of the government’s ambitious “2026 Economic Growth Strategy,” which aims to transform the nation into a premier digital hub by introducing stablecoin laws and paving the way for spot crypto exchange-traded funds (ETFs).
This article explores what led to the ban on corporate trading in South Korea, what the new guidelines facilitate and how this step will transform South Korea’s crypto market. It also examines the risks South Korean regulators are confronting and compares South Korea’s corporate crypto trading policy with those of other countries.
Why corporate crypto trading was banned in South Korea
In 2017, South Korea prohibited institutional involvement in crypto markets due to a surge in retail speculation. Regulators were concerned about the risks of money laundering, market manipulation and threats to financial stability. Authorities restricted corporations and professional investors from participating while allowing retail crypto trading under stringent compliance requirements.
This policy distinctly shaped South Korea’s crypto market. Retail investors eventually dominated trading activity, whereas local institutions remained largely excluded from a rapidly expanding asset class. Gradually, this situation also drove capital flows abroad, with Korean investors and companies pursuing exposure via overseas exchanges and foreign investment products.
On the other hand, developed markets like the US progressively incorporated institutional capital into crypto through regulated futures, custody solutions and, ultimately, spot ETFs. By 2024, institutional participation represented the bulk of trading volumes on many leading global platforms.
Did you know? In 2018, South Korean banks issued special “real-name account” partnerships with exchanges, making them legally responsible for monitoring crypto transactions tied to customer identities.
What South Korea’s new corporate crypto rules allow
According to new guidelines issued by the Financial Services Commission (FSC), approximately 3,500 organizations are set to gain permission for crypto trading. This group encompasses publicly traded companies along with duly registered professional investment firms.
To begin with, corporate allocations to cryptocurrencies will be limited to no more than 5% of a company’s yearly equity capital. The purpose of this ceiling is to prevent businesses from exposing their balance sheets to undue levels of risk, while authorities monitor the broader implications of institutional involvement on overall market stability.
Permissible investments are confined exclusively to the 20 cryptocurrencies with the highest market capitalization. These cryptocurrencies will be available for trading on South Korea’s five principal regulated crypto exchanges. This channels corporate activity toward major, highly liquid cryptocurrencies like Bitcoin (BTC) and Ether (ETH), thereby sidelining the vast majority of smaller-cap or especially volatile digital assets.
The status of stablecoins such as Tether’s USDt (USDT) within South Korea’s regulatory framework is still under evaluation. Officials have indicated that stablecoins could undergo a distinct review process. Additional legislation may be introduced concerning payment systems and financial market infrastructure.
Crypto exchanges will need to implement safeguards for institutional orders, including mechanisms such as staggered trade execution and caps on individual order sizes. These legal requirements are intended to reduce abrupt price fluctuations and prevent large orders from disrupting thin order books.
Did you know? Korea’s National Pension Service, one of the world’s largest public pension funds, has invested in blockchain-related companies but has so far avoided holding cryptocurrencies directly.
How this fits into South Korea’s broader crypto strategy
The guidelines for corporate cryptocurrency trading in South Korea are not an isolated change. Instead, they form part of a broader regulatory overhaul that includes the upcoming Digital Asset Basic Act, which the National Assembly is scheduled to present in the early months of 2026.
This proposed law aims to consolidate the currently fragmented crypto regulations. It will address key areas such as exchange oversight, token issuance, custody, market conduct and investor protection. Policymakers are examining possible frameworks for stablecoins pegged to the Korean won and regulated spot cryptocurrency ETFs. These steps will further integrate digital assets into traditional financial markets.
These initiatives suggest a shift from crisis-driven restrictions toward structured market participation under formal regulatory supervision.
How corporate access will be transforming South Korea’s crypto market
South Korea’s decision to allow limited corporate participation in cryptocurrency markets is a positive step toward greater institutional integration. This change, along with the upcoming broader regulations, is likely to reshape the country’s crypto landscape over time.
Institutional liquidity and market structure
Enabling corporate participation will transform the dynamics of Korea’s cryptocurrency market. Institutional traders generally operate with longer investment periods, diversified strategies and professional risk management systems. Their arrival may enhance liquidity, narrow bid-ask spreads and reduce the dominance of short-term retail trading activity.
However, the 5% investment limit restricts the volume of funds that can enter crypto from company treasuries in the short term. As a result, the market impact may be gradual rather than immediate.
Treasury strategies and business innovation
In other jurisdictions, various companies have implemented strategies for holding digital assets in their treasuries. They use Bitcoin or similar assets as long-term balance sheet holdings. For instance, Japan’s Metaplanet has drawn worldwide interest by steadily increasing its Bitcoin holdings to build corporate value.
Industry participants in South Korea argue that a stringent investment limit may prevent diverse business models from emerging. Critics say companies should have the freedom to determine their own risk exposure within standard corporate governance and disclosure rules instead of dealing with crypto-specific investment restrictions.
Domestic financial products
Institutional participation in the crypto market will help create new types of financial instruments. These might include cryptocurrency ETFs, structured notes and custody services. For banks and asset managers, corporate trading demand could justify further investment in digital asset infrastructure.
This development could improve South Korea’s ability to compete with other financial centers in Asia, such as Hong Kong and Singapore. These hubs are actively courting digital asset firms and institutional investors.
Did you know? Some Korean conglomerates already use blockchain for supply chain tracking and digital certificates, meaning corporate exposure to distributed ledger technology predates financial crypto investments.
Comparing South Korea’s corporate crypto policy with other countries
South Korea’s cautious approach to allowing corporate crypto participation differs from the prevailing policies in major markets. In the US and parts of Europe, there are no specific percentage caps on corporate crypto holdings. However, businesses must still follow accounting rules, disclosure requirements and fiduciary responsibilities.
Japan and Hong Kong also allow institutional involvement without imposing fixed caps on balance sheet exposure. Instead, they rely on licensing frameworks, custody regulations and rules governing proper market conduct.
South Korea’s framework reflects a more cautious regulatory stance. It opens the door to crypto assets for corporations while restricting the scale of participation until authorities build greater confidence in the market’s stability.
Risks South Korean regulators are confronting
From the FSC’s viewpoint, the new framework balances market growth with the need to maintain financial stability. The risks that continue to concern regulators include:
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Volatility risk, which could harm corporate balance sheets and weaken investor confidence
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Operational risk, such as failures in custody arrangements or disruptions at crypto exchanges
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Reputational risk, which arises if companies experience significant losses from speculative crypto trading.
By placing limits on the types of assets allowed and the size of investments, regulators aim to contain systemic exposure while building regulatory experience with institutional crypto participation.
What happens next?
The FSC is expected to release the final version of the guidelines in January or February 2026. Its implementation will be coordinated alongside the Digital Asset Basic Act later in the year. Corporate crypto trading may begin before the end of the year, provided that the legislative schedule stays on course.
Future adjustments may occur if market conditions remain stable and compliance mechanisms demonstrate reliability. Industry associations are likely to push for higher investment limits and a wider range of eligible assets once this initial stage has been completed.
Balancing financial stability with institutional innovation
Lifting the long-standing ban on corporate crypto trading participation represents a significant change in South Korea’s approach to digital assets. After nearly a decade of retail-only participation, institutions are finally being allowed into the domestic South Korean market, though under tight constraints.
Whether this cautious opening evolves into full institutional integration will hinge on market performance, how companies manage risk and how effectively regulators enforce safeguards. It is evident, however, that South Korea no longer views corporate crypto participation as inherently incompatible with financial stability but rather as an activity that can be managed within a structured regulatory framework.
Cointelegraph maintains full editorial independence. The selection, commissioning and publication of Features and Magazine content are not influenced by advertisers, partners or commercial relationships.
Starknet Taps EY’s Nightfall for Institutional Privacy on Ethereum Rails
Starknet developer StarkWare has integrated EY’s Nightfall privacy protocol to let institutions run private payments and decentralized finance (DeFi) activity on public Ethereum-aligned rails, targeting banks and corporates that need confidentiality without giving up auditability.
In a Tuesday release shared with Cointelegraph, StarkWare positioned the move as a way for enterprises to use a shared, open layer-2 rather than closed, bank-only networks, while working with a Big Four firm that already audits many of the organizations it wants to onboard.
The integration brings Nightfall, an open-source zero-knowledge (ZK) privacy layer built by EY, that lets transactions be verified without revealing underlying data, onto Starknet to enable private B2B and cross-border payments, confidential treasury management and 24/7 tokenized asset transfers onchain.
StarkWare said that institutions will also be able to access Ethereum DeFi for activities such as lending, swaps and yield strategies, with transactions private by default but supporting selective disclosure, auditability and Know Your Customer (KYC) protocols.
Related: Arbitrum, Optimism and Base weigh in after Vitalik questions L2 scaling model
Starknet and Nightfall target institutional flows
StarkWare frames this as a “major breakthrough” in making public blockchains usable for institutional capital that has so far been deterred by full onchain transparency and the resulting compliance and competitive risks.
Eli Ben-Sasson, StarkWare co-founder and CEO and a founding scientist of privacy-focused cryptocurrency Zcash (ZEC), said in the release that blockchains could give every institution “the equivalent of a private superhighway for stablecoins and tokenized deposits,” positioning Nightfall on Starknet as a concrete step toward that vision.
Alex Gruell, StarkWare’s global head of business development, told Cointelegraph that Nightfall was “particularly useful for institutions requiring ready-to-go KYC verification as part of their onboarding to the blockchain,” and part of a broader privacy push on Starknet.
He said that while crypto native teams had “moved mountains” building ZK infrastructure, the EY-built system added a complementary layer of institutional credibility and “regulatory fluency.”
Related: Vitalik Buterin tempers vision for ETH L2s, pushes native rollups
Gruell also cast Starknet plus Nightfall as an interoperability layer between institutions, contrasting it with what he claimed are “siloed” institutional environments on rival networks, which he said “do not serve as an interoperability infrastructure,” and permissioned models such as Canton Network, which are “not yet integrated with the Web3 ecosystem.”
He stressed that Nightfall would remain permissionless and fully integrated into Starknet, with a staged rollout, where initial deployment focused on “private payments and transfers with compliance gating and secure sequencing in place,” while “verifier upgrades and expanded functionality follow as the system scales.”
Starknet’s growth and teething trouble
Starknet has steadily grown into one of the larger ZK rollups by total value locked (TVL), currently about $280 million, with usage primarily driven by DeFi protocols and native ecosystem apps.
At the same time, Starknet’s rapid scaling push has exposed reliability challenges. In 2025, the network suffered major outages tied to sequencer and infrastructure issues, prompting public post-mortems and commitments to harden reliability before courting more institutional flow.
Magazine: Back to Ethereum — How Synthetix, Ronin and Celo saw the light
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Africrypt Founders Return to South Africa After Years in Hiding: Report
South Africa’s so-called “Bitcoin Brothers,” Raees and Ameer Cajee, have quietly returned to the country years after the collapse of their crypto investment platform Africrypt, according to a new TV investigation.
A segment aired Sunday by investigative program “Carte Blanche” said the pair is residing inside the gated Zimbali Estate in KwaZulu-Natal, MyBroadband reported on Monday. According to the report, journalists attempted to approach the property but were blocked by private security.
The team also reportedly traced the brothers to a holiday location in Umhlanga and a recent address in Johannesburg, but failed to make direct contact.
Gerhard Botha, a lawyer representing an investor who claims to have lost about $50 million, said legal papers have still not been served. “They can protect themselves. They’ve got security. Because they have money,” Botha told the program.
Cointelegraph reached out to law firms representing duped investors for comment, but had not received a response by publication.
Related: Remittances ‘more important than aid’ as Africa turns to stablecoins
Africrypt pitched 13% monthly returns
The Cajees operated Africrypt between 2019 and 2021, promoting the platform as a high-yield crypto investment service. Investors were promised returns of up to 13% per month through a proprietary trading system said to rely on artificial intelligence. The company accepted deposits in both South African rand and cryptocurrency.
Africrypt unraveled on April 13, 2021, when the founders informed users that the platform had been hacked and its holdings stolen. Weeks later, the brothers left South Africa, eventually traveling through the Maldives before reaching Dubai amid pandemic travel restrictions.
Early media reports suggested as much as $3.6 billion had disappeared, but subsequent investigations placed the figure closer to $40 million to $50 million, according to MyBroadband. The exact amount of investor losses remains unknown.
The case drew international attention as the founders moved across multiple jurisdictions, including Tanzania and the United Arab Emirates. Ameer Cajee was later arrested in Switzerland in 2021 while visiting safe-deposit boxes believed to contain hardware wallets holding cryptocurrency. He was released on bail months later.
Related: South Africa’s central bank says no ‘strong immediate need’ for CBDC
South Africa warns crypto, stablecoins pose new risks
In November 2025, South Africa’s central bank identified digital assets and stablecoins as an emerging risk to the financial system as crypto adoption accelerated. In its second Financial Stability Report for 2025, the South African Reserve Bank said users across the country’s three largest crypto exchanges reached 7.8 million by July, with about $1.5 billion held in custody at the end of 2024.
The bank warned that the borderless nature of crypto could allow funds to bypass exchange-control rules governing capital flows. It also noted that US dollar-pegged stablecoins have increasingly replaced Bitcoin (BTC) and other major tokens as the primary trading pair on local platforms due to their lower volatility.
Magazine: Bitget’s Gracy Chen is looking for ‘entrepreneurs, not wantrepreneurs’
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
BNB Chain Launches $88K Lunar New Year Campaign Amid Network Outflows
Peter Zhang
Feb 17, 2026 12:36
BNB Chain rolls out eight ecosystem campaigns with $88,000 in rewards through March 3, as the network battles $219M in recent liquidity outflows.
BNB Chain is distributing $88,000 across eight ecosystem campaigns running February 17 through March 3, timing the Year of the Horse promotion as the network works to stem significant capital outflows.
The initiative spans DappBay-hosted quests involving trading, staking, NFT minting, and prediction markets. Each of the eight participating protocols—including ChainGPT, Four.meme, and Predict.fun—is offering $11,000 prize pools distributed via raffle to users completing on-chain tasks.
Campaign Breakdown
The requirements vary considerably across platforms. Four.meme demands just $48 in meme token trading volume for raffle entry, while Renaiss Protocol splits its pool between traders completing buy/sell tasks ($120 per winner) and users purchasing limited Lunar New Year gacha packs ($100 per winner).
ChainGPT’s campaign pushes users toward its staking and AI development tools—participants must gift at least 10 CGPT tokens, stake 1+ CGPT, and deploy a smart contract via the platform’s AI Hub. Predict.fun requires a minimum $5 prediction market order.
Winner counts range from 100 (Renaiss) to 2,200 (SUPERFORTUNE and Audiera), meaning individual reward sizes span roughly $5 to $120 depending on the campaign.
Timing Raises Questions
The promotional push comes during a rough stretch for BNB Chain. Data from February shows the network lost $219 million in net liquidity over the past three months—the second-largest outflow among major chains, trailing only Arbitrum. The broader BNB Chain sector dropped 17.3% earlier this month, erasing $29.7 billion in market value during a period of extreme fear sentiment.
BNB itself has held relatively steady, trading at $621.31 as of February 11 with a $128.26 billion market cap. But ecosystem activity tells a different story.
Renaiss Protocol, one of the campaign participants, recently showcased physical collectibles worth over $15 million at Consensus Hong Kong 2026—a sign that some BNB Chain projects are doubling down on real-world utility plays even as speculative capital exits.
What Traders Should Know
These campaigns aren’t free money. Most require wallet connections, token purchases, or minimum trading volumes that carry their own costs and risks. The raffle structure means completing tasks guarantees nothing—Four.meme’s 440 winner slots from potentially thousands of participants illustrates the odds.
For BNB Chain, the $88,000 spend is modest marketing. Whether it moves the needle on those outflow numbers by March 3 will say more about ecosystem health than the campaigns themselves.
Image source: Shutterstock
Bitcoin Holds Key Level, Altcoins Aim To Follow: Will Bears Relent?
Key points:
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Bitcoin remains under pressure as bears are selling on rallies near the $74,508 resistance
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The bears are mounting a solid defense in several major altcoins at higher levels, indicating a negative sentiment.
Bitcoin (BTC) has started the new week on a cautious note as bulls attempt to maintain the price above $67,500. Investors are not rushing in to buy the dip, as seen from the $133.3 million in outflows from BTC exchange-traded products last week. The total outflows from crypto investment products have risen to $3.8 billion over the past four weeks, according to a CoinShares update on Monday.
If BTC ends the month below $79,500, it will record its first-ever consecutive negative monthly closing in January and February. With a more than 22% loss, BTC is staring at its worst first-quarter performance since the 49.7% loss in 2018, per CoinGlass data.
Despite BTC’s weak performance and uncertain near-term direction, Strategy co-founder Michael Saylor indicated in a post on X that the company is buying more BTC. That will be Strategy’s 99th BTC transaction, showing its long-term bullish view remains intact.
Could BTC and the major altcoins defend the support levels and start a strong relief rally? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
S&P 500 Index price prediction
The S&P 500 Index (SPX) is witnessing a tough battle between the bulls and the bears at the support line of the ascending channel pattern.
The moving averages are on the verge of a bearish crossover, and the relative strength index (RSI) is in the negative territory, indicating that the bears are making a comeback. The index may start a deeper correction to 6,720 and then to solid support at 6,550 if the price breaks below the 6,780 level.
Buyers will have to propel the price above the 7,002 level to retain control. If they manage to do that, the index may resume its uptrend and surge toward the 7,290 level.
US Dollar Index price prediction
The US Dollar Index (DXY) has been trading below the moving averages, but the bears have failed to challenge the 96.21 to 95.55 support zone.
The bulls will try to strengthen their position by pushing the price above the moving averages. If they can pull it off, the index may rally to 99.49 and then to the overhead resistance at 100.54.
Contrarily, if the price turns down sharply from the moving averages, it suggests that the bears continue to sell on rallies. The index may the next leg of the downtrend on a close below the 95.55 support.
Bitcoin price prediction
Sellers are attempting to halt BTC’s recovery near $71,000, indicating that the bears remain sellers on rallies.
The sellers will have to pull the price below the $65,000 level to remain in command. The BTC/USDT pair may then retest the critical $60,000 level. If the $60,000 support cracks, the next stop is likely to be $52,500.
Buyers will have to drive the Bitcoin price above the breakdown level of $74,508 to signal that the bearish momentum is weakening. The pair may then surge toward the 50-day simple moving average (SMA) ($83,910), where the bears are expected to mount a strong defense.
Ether price prediction
Ether (ETH) once again turned down from the $2,111 level on Sunday, indicating that the bears are fiercely defending the level.
Sellers will attempt to pull the price below the immediate support at $1,897. If they do that, the ETH/USDT pair may drop to the $1,750 level. Buyers are expected to defend the $1,750 level with all their might, as a close below it may sink the pair to $1,537.
Instead, if the Ether price turns up and breaks above the 20-day exponential moving average (EMA) ($2,221), it signals that the selling pressure is reducing. The pair may then rally to the 50-day SMA ($2,744).
BNB price prediction
BNB’s (BNB) relief rally fizzled out at $642 on Sunday, indicating that the bears are selling on every minor rise.
The bears will attempt to increase their hold by pulling the BNB price below the $570 level. If they manage to do that, the BNB/USDT pair may extend its decline to psychological support at $500.
The bulls will have to drive the price above the 20-day EMA ($686) to suggest that the bears are losing their grip. The pair may then climb to $730 and subsequently to the 50-day SMA ($817).
XRP price prediction
XRP (XRP) turned up from the support line of the descending channel pattern on Friday and pierced the 20-day EMA ($1.53) on Sunday.
However, the bears successfully defended the breakdown level of $1.61 and pulled the XRP price back below the 20-day EMA. The bulls are unlikely to give up easily and will make another attempt to clear the $1.61 level.
If they succeed, the XRP/USDT pair may rise to the 50-day SMA ($1.81). Such a move suggests that the pair may remain inside the channel for some more time.
Sellers will have to tug the price below the support line to gain the upper hand. The pair may then retest the Feb. 6 low of $1.11.
Solana price prediction
Buyers are attempting to push Solana (SOL) back above the breakdown level of $95, but the bears have held their ground.
The Solana price may trade inside the $76 to $95 range for some time. Such a move increases the likelihood of an upside breakout. The SOL/USDT pair may then rally toward $117.
This positive view will be negated in the near term if the price turns down and breaks below the $76 support. The pair may then retest the Feb. 6 low of $67, where the buyers are expected to step in.
Related: $75K or bearish ‘regime shift?’ Five things to know in Bitcoin this week
Dogecoin price prediction
Dogecoin (DOGE) turned down from the breakdown level of $0.12 on Sunday, indicating that the bears are defending the level.
The 20-day EMA ($0.10) is flattening out, and the RSI is just below the midpoint, signaling a possible range-bound action in the near term. The DOGE/USDT pair may swing between $0.08 and $0.12 for a few days.
Buyers will gain the upper hand on a close above the $0.12 resistance. That opens the doors for a rally to $0.16. Alternatively, the advantage will tilt in favor of the bears on a close below $0.08. The Dogecoin price may then slump to $0.06.
Cardano price prediction
Cardano’s (ADA) relief rally reached the 20-day EMA ($0.29) on Saturday, which is expected to act as a stiff hurdle.
If the bulls do not give up much ground to the bears, the possibility of a break above the 20-day EMA increases. That suggests the ADA/USDT pair may remain inside the descending channel for some more time. A break and close above the downtrend line signals a potential short-term trend change.
Sellers will have to pull the Cardano price below the support line to extend the downward move toward the next support at $0.20.
Bitcoin Cash price prediction
Bitcoin Cash (BCH) surged above the 20-day EMA ($544) on Friday, indicating that the bears are losing their grip.
The recovery is facing resistance at the 50-day SMA ($578), but a positive sign is that the bulls have not allowed the Bitcoin Cash price to slip back below the 20-day EMA. That increases the likelihood of the continuation of the relief rally. If buyers pierce the 50-day SMA, the BCH/USDT pair may reach $600.
Sellers will have to swiftly yank the price below the 20-day EMA to apply pressure on the bulls. The pair may then skid to the $500 support.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
How South Korea Is Using AI to Detect Crypto Market Manipulation
Key takeaways
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South Korea is transitioning crypto market surveillance to AI-driven systems, in which algorithms automatically detect suspicious trading activity, replacing manual processes.
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The new detection model employs a sliding-window grid search technique, scanning overlapping time segments to spot abnormal patterns such as unusual volume surges.
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Through 2026, the Financial Supervisory Service plans to enhance AI capabilities with tools to detect coordinated trading account networks and trace manipulation funding sources.
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Regulators are exploring proactive intervention measures, such as temporary transaction or payment suspensions, to freeze suspicious activity early and prevent the withdrawal of illicit gains.
South Korea is advancing its cryptocurrency market oversight by shifting to AI-driven surveillance. Algorithms now perform the initial detection of suspicious activities instead of relying solely on human investigators.
As crypto trading grows faster, more decentralized and increasingly difficult to monitor manually, regulators are leveraging artificial intelligence to identify irregularities and anomalies more quickly.
Central to this evolution is the Financial Supervisory Service’s (FSS) enhanced Virtual Assets Intelligence System for Trading Analysis (VISTA). This upgrade reflects the recognition that traditional, manual, case-by-case probes can no longer keep pace with today’s dynamic digital asset markets.
This article explains how South Korea’s financial regulators are using upgraded AI systems to automatically detect crypto market manipulation, improve surveillance, analyze trading patterns and plan advanced tools. It also explores faster intervention and alignment of crypto oversight with broader financial markets.
Why South Korea is enhancing its crypto monitoring tools
Crypto markets produce massive volumes of data across exchanges, tokens and timelines. Manipulative tactics such as pump-and-dump schemes, wash trading or spoofing often create sudden bursts that are difficult to detect. Manually identifying suspicious periods in crypto activity has become increasingly challenging at the current market scale. As interconnected trading patterns grow more intricate, automated systems are designed to continuously scan and flag potential issues.
This automation aligns with Korea’s broader effort to strengthen oversight of digital markets, particularly as crypto has become more deeply integrated with retail investors and the overall financial system.
What VISTA does and how the recent upgrade improves it
VISTA serves as the FSS’s primary platform for examining unfair trading in digital assets. In its earlier version, analysts had to specify suspected manipulation time frames before running analyses, which restricted the detection range.
The recent upgrade adds an automated detection algorithm that can independently pinpoint potential manipulation periods without manual input. The system now searches the entire data set, enabling investigators to review suspicious intervals that might otherwise go unnoticed.
According to the regulator, the system successfully identified all known manipulation periods in internal tests using completed investigation cases. It also flagged additional intervals that had been difficult to detect using traditional methods.
Did you know? Some crypto exchanges process more individual trades in a single hour than traditional stock exchanges handle in an entire trading day, making continuous automated surveillance essential for regulators seeking to monitor real-time risks.
How the automated detection operates
Applying a sliding-window grid search approach, the algorithm divides trading data into overlapping time segments of varying durations. It then assesses these segments for anomalies.
The model scans every possible sub-period, identifying patterns associated with manipulation without requiring investigators to determine where misconduct may have occurred. Examples of such patterns include sharp price spikes followed by rapid reversals or unusual volume surges.
Rather than supplanting human oversight, the model prioritizes high-risk segments, enabling teams to focus on critical windows instead of manually reviewing the entire data set.
Did you know? In crypto markets, price manipulation can sometimes occur in windows lasting less than five minutes, a time frame too short for most human-led monitoring systems to catch reliably.
Upcoming AI enhancements through 2026
The FSS has secured funding for phased AI improvements through 2026. Key planned features include:
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Tools designed to identify networks of coordinated trading accounts: These systems aim to detect clusters of accounts acting in sync, a common feature of organized manipulation schemes.
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Large-scale analysis of trading-related text across thousands of crypto assets: By examining abnormal promotional activity or narrative spikes alongside market data, regulators hope to better understand how attention shocks and price movements interact.
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Tracing the origin of funds used in manipulation: Linking suspicious trades to funding sources could strengthen enforcement cases and reduce the ability of bad actors to obscure their tracks.
Did you know? Early market surveillance algorithms in traditional finance were originally designed to detect insider trading in equities, not crypto. Many of today’s tools are adaptations of models built decades ago for stock exchanges.
Shift toward proactive intervention in South Korea
South Korea’s AI surveillance push seeks quicker responses. The Financial Services Commission is considering a payment suspension mechanism that could temporarily block transactions linked to suspected manipulation.
This approach aims to prevent gains from being withdrawn or laundered early. While not yet finalized, it suggests a shift by regulators from reactive to preventive enforcement.
Preemptive actions raise important governance questions around thresholds, oversight and the risk of false positives, issues regulators will need to address carefully.
This crypto-focused initiative parallels efforts in conventional capital markets. The Korea Exchange is implementing an AI-based monitoring system to identify stock manipulation earlier. The idea is to create a unified approach across asset classes, combining trading data, behavioral cues and automated risk assessment.
Strengths and limitations of AI surveillance
AI-based systems are adept at spotting repetitive, pattern-driven misconduct such as wash trading or coordinated price spikes. They enhance consistency by flagging suspicious behavior even when it occurs in small or short-lived windows.
For exchanges, AI-driven oversight raises expectations around data quality and monitoring capabilities. It also increases cooperation with regulators. With AI models, surveillance becomes continuous rather than episodic.
Traders and issuers should expect greater scrutiny of subtle manipulative patterns that previously evaded attention. While detection begins algorithmically, real-world penalties remain significant.
But automated surveillance has certain limitations. Cross-venue manipulation, off-platform coordination and subtle narrative engineering remain difficult to detect. AI models also require regular evaluation to avoid bias, drift or the flagging of legitimate activity.
AI tools support, not replace, human investigators.
Shaping of a new enforcement framework
South Korea’s strategy involves AI models built around continuous monitoring, automated prioritization and swifter action. As these systems evolve, balancing efficiency with transparency, due process and accountability will be key.
The implementation of these models will shape not only Korea’s crypto markets but also how other jurisdictions approach regulating digital assets in an era of algorithmic trading and mass participation.
Cointelegraph maintains full editorial independence. The selection, commissioning and publication of Features and Magazine content are not influenced by advertisers, partners or commercial relationships.
Collapse of World Order Puts Permissionless Money in the Spotlight
Ray Dalio warned that the post-World War II order has “officially broken down,” with the world now sliding into what he bluntly calls a “law of the jungle” phase, where power, not rules, decides outcomes, and crypto investors are using the moment to renew the case for assets designed to operate outside state control.
In his latest article on X describing both internal and external disorder, the Bridgewater Associates founder wrote that great powers are now locked in a persistent “prisoner’s dilemma.” They must either escalate or look weak across trade, technology, capital flows and, increasingly, military flashpoints, making what he calls “stupid wars” frighteningly easy to trigger.
That external disorder tends to collide with internal stress, Dalio said. When economies are under strain and wealth gaps are wide, governments reliably reach for higher taxes and “big increases in the supply of money” that devalue existing claims rather than pushing explicit defaults.
That combination is exactly the type of environment in which apolitical assets like Bitcoin (BTC) and gold have typically thrived. The pitch from crypto advocates is straightforward: As governments lean more heavily on sanctions, asset freezes and money creation, investors will look harder at assets that can be held and transferred without relying on a bank or a state-backed payments system.
Liquidity data fuels hard assets
Data from Econovis found that global broad money climbed to an estimated $142 trillion in 2025 from $26 trillion in 2000.
According to ex-fund manager Asymmetry, every major BTC rally has coincided with M2 expansion, and “the next wave is building.”
Gold prices have also generally tracked the US M2 money supply, reflecting the precious metal’s status as a traditional hedge against monetary expansion.
Related: ‘No privacy’ CBDCs will come, warns billionaire Ray Dalio
A bull case for neutral money
Dalio’s framework also emphasizes how states use asset freezes, capital market bans and embargoes as standard tactics, showing how dependent traditional savings and payments are on political discretion and jurisdictional risk, and placing the case for an apolitical, borderless money front and center.
Bitwise CEO Hunter Horsley captured the crypto community’s thoughts in a single comment, saying, “Is anyone working on global, permissionless, apolitical monetary assets and financial rails?? Could be important.”
Asymmetry made a similar point from the portfolio side, arguing that the setup Dalio is describing, a fracturing world order layered on top of what macro analysts such as Lyn Alden or Luke Gromen call fiscal dominance, where government borrowing needs effectively dictate central bank policy, is among the “most structurally bullish backdrop for hard assets in 80 years.”
Still, Dalio’s warning is not a direct forecast for Bitcoin, and the investment case for crypto remains sensitive to a wide range of factors, including interest rates, regulation, market liquidity and risk appetite. What his latest comments do provide is a clear macro narrative that many in the crypto market are using to argue that demand for “neutral money” could increase as the world becomes more fractured.
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Timeline: When Will The CLARITY Act Pass?
The crypto industry and investors are awaiting the completion of the US CLARITY Act, which has been delayed amid partisan politics and industry concerns.
The bill would rewrite the rules of the road for the crypto industry, from which agency oversees it to regulations for decentralized finance (DeFi).
Currently, lawmakers in the US Senate are hammering out the details, with significant points of contention. Democrats want a bipartisan bill with ethics provisions and a bailout prohibition that Republicans roundly rejected.
The crypto industry itself has taken issue with some of the provisions. Namely, Coinbase, the largest crypto exchange in the US, doesn’t want a bill that prevents it from offering stablecoin yields. The US bank lobby opposes such yields, saying they threaten deposits and the stability of the financial system.
The bill has gone through several iterations. Here’s a look at how far it’s come:
May 2025: CLARITY comes to Washington
House Committee on Financial Services Chairman French Hill first introduced the CLARITY Act on May 29, 2025.
The goal of the bill, according to the committee, was to establish “clear, functional requirements for digital asset market participants, prioritizing consumer protection while fostering innovation.”
The committee said the bill was needed for several reasons, mainly that digital assets represented the next step in digital financial innovation and that the regulatory status quo was stifling possibilities.
June-July 2025: House passes crypto bill
The House of Representatives moved with uncharacteristic speed on the CLARITY Act. In June, the bill moved through markup sessions in the House committees on agriculture and financial services and was placed on the calendar for a vote on the floor by June 23.
On July 17, the House of Representatives passed the bill, 294-134. The vote found more support among Republicans. Some 216 Republicans supported the bill, none opposed, while four abstained from voting.
There was some bipartisan support: 78 Democrats joined in voting “Yea,” while most of them, 134 Democratic Representatives, voted “Nay.” No Democrats abstained from voting.
With the vote, the bill moved to the upper house, the US Senate, where it has since been under debate.
July-September 2025: Senate starts work
The Senate quickly got underway with work on CLARITY. On July 22, Republican leaders on the US Senate Banking Committee released a draft version of the bill.
The discussion draft would “establish clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation.”
Senate Banking Committee Chair Tim Scott was optimistic about the Senate moving just as quickly as the House, giving an initial deadline of Sept. 30, 2025.
October-December 2025: Senators at odds during government shutdown
Democrats on the Senate Banking Committee, including noted cryptocurrency skeptic Senator Elizabeth Warren, were opposed to several parts of the discussion draft.
Warren took issue with how taxes would be treated under the law, saying in a statement that “proposals to clarify crypto’s tax treatment could ultimately give crypto an unfair advantage over other financial products.”
She also said that the proposals “make it harder to track what’s happening in crypto transactions if they are being used for illegal purposes.”
Senate Democrats also came up with their own proposals on how the bill would regulate DeFi. According to partners at Skadden Arps Slate Meagher & Flom, these DeFi rules sought to “leverage existing regulatory frameworks to create a crypto market structure and show Congress’ instinct to retrofit the current system rather than design one built for crypto.”
This was diametrically opposed to Republicans’ and the crypto industry’s vision, which was to create a new, bespoke system for the digital asset industry.
On Nov. 11, 2025, the Senate Agricultural Committee released its own discussion draft of CLARITY. The draft noted that lawmakers were still discussing the idea of which federal agency, the Commodity Futures Trading Commission (CFTC) or the Securities Exchange Commission (SEC), would regulate the industry.
Further hindering progress was the US federal government shutdown from Oct. 1 to Nov. 12 — the longest in history after the previous one that occurred in President Donald Trump’s first term. It only ended after a small group of Senate Democrats voted with Republicans to pass a resolution to temporarily fund the government.
December 2025-January 2026: Markup session, crypto industry gets impatient
Senator Cynthia Lummis predicted in the autumn that the crypto framework law would reach Trump’s desk by New Year’s Eve. As the year 2025 drew to a close, this seemed less likely.
On Dec. 19, the White House’s crypto and AI czar, David Sacks, said that, after a meeting with top senators working on CLARITY, there would be a markup session in January.
However, the planned markup session in the Senate Banking Committee was postponed amid substantive disagreements about the bill from the crypto industry lobby and the banking industry.
Coinbase CEO Brian Armstrong said they couldn’t support the bill due to its provisions banning interest-bearing stablecoins, as well as positioning the SEC as the main crypto industry regulator.
Related: US crypto market structure bill in limbo as industry pulls support
The move reportedly infuriated the White House, which was eager to complete work on the framework law.
Other financial bigwigs like David Solomon, CEO of Goldman Sachs, agreed with Armstrong, saying that the bill “has a long way to go.”
Work on the law did not stop completely. The Senate Agriculture Committee announced that it would have its own markup session on Jan. 27. Committee Democrats attempted to make amendments to the bill, including an ethics provision banning Congress from trading crypto, as well as ruling out any possibility of the government bailing out crypto.
These votes failed along party lines, and the Republican majority advanced the bill to the Senate floor.
February 2026: High-level talks at the White House, political maneuvers
Crypto industry executives, lawmakers and bankers are now meeting frequently at the White House and in the halls of Congress to figure out a solution to their differences. The Digital Chamber of Commerce said that a meeting on Feb. 3 focused on stablecoin yields.
These talks have continued. On Tuesday, more executives, including Ripple chief legal officer Stuart Alderoty, met for what was a “productive session.”
“Clear, bipartisan momentum remains behind sensible crypto market structure legislation. We should move now — while the window is still open,” he said.
Still, there’s been no deal. Delays have reportedly led to nearly $1 billion in outflows from the crypto market, according to data from CoinShares. Some observers believe that the delays are ultimately good in the long run, as it gives the industry a chance to bargain for more favorable terms.
Market analyst Michaël van de Poppe said, “I think if the bill were approved in its current form, it would have had a very bad impact on the markets in general. So, now, all the parties are aligned to continue the discussion. It reminds me a lot of the Markets in Crypto-Assets (MiCA) regulations in Europe.”
Many are eager to seal the deal before the midterm elections. The crypto lobby has been building its political machine through donations to political action committees (PACs). Both Republican and Democratic members of Congress are reportedly eager to pass something favorable before the 2026 campaign cycle begins and crypto PACs decide who to support.
Related: Crypto PACs secure massive war chests ahead of US midterms
Crypto’s strong support in the Republican Party could also prove a liability as the party loses popularity. Midterm elections historically go against the sitting president’s party, and in one year, the crypto lobby could be stuck with a lame-duck president and lukewarm support among a Democrat majority.
The success of CLARITY could end up being a race against the clock.
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Binance Rejects Claims of Iran-Linked Transactions and Staff Firings
Crypto exchange Binance pushed back against a recent report by Fortune, rejecting allegations that it enabled sanctions-violating transactions tied to Iran and fired compliance investigators who raised concerns.
Fortune reported Friday that internal investigators at Binance discovered more than $1 billion in transfers linked to Iranian entities moving through the platform between March 2024 and August 2025. The transactions were said to involve Tether’s USDt (USDT) stablecoin on the Tron blockchain.
Citing unidentified sources, the report claimed that at least five investigators, several with law-enforcement backgrounds, were later fired after documenting the activity. The outlet also reported that additional senior compliance staff had departed the company in recent months.
Binance disputed the characterization in a formal response. “This is categorically false. No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues as there are no violations,” the exchange wrote in an email shared by CEO Richard Teng.
Binance denies sanctions violations after internal review
Binance said it conducted a full internal review with outside legal advice and found no evidence it had violated applicable sanctions laws in connection with the referenced activity. It also rejected the suggestion that the exchange failed to meet its regulatory obligations under ongoing oversight.
Related: Binance confirms employee targeted as three arrested in France break-in
The dispute lands as Binance remains under heightened scrutiny since its 2023 settlement with US authorities in which it agreed to pay $4.3 billion for Anti-Money Laundering (AML) and sanctions violations. Founder Changpeng Zhao stepped down as CEO and later served a four-month prison sentence. Binance also agreed to being monitored and pledged to strengthen compliance controls.
Binance denied claims it is failing to meet regulatory obligations, saying it continues to cooperate under monitoring and oversight requirements. “The article suggests that Binance is “reneging” on its regulatory obligations. This assertion is false,” the exchange said.
Binance acknowledged Cointelegraph’s request for comment, but had not responded by publication.
Related: Binance completes $1B Bitcoin conversion for SAFU emergency fund
FT report questions Binance compliance controls
A December report by the Financial Times also claimed that Binance allowed a group of suspicious accounts to move significant sums through the exchange even after its US criminal settlement in 2023. Internal data reviewed by the publication showed 13 such user accounts had about $1.7 billion in transactions since 2021, including about $144 million after the plea agreement.
“We take compliance seriously and reject the framing of the Financial Times report,” a Binance spokesperson told Cointelegraph at the time, adding that all transactions are assessed “based on information available at the time,” and that none of the wallets referenced were sanctioned when the activity referenced occurred.
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Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy