Regulator outlines manipulation tactics, warns investors
According to the reports, the FSS described several methods used in distorting prices, including repeated placement of tiny market buy and sell orders to create the appearance of dynamic trading. The regulator added that traders were taking advantage of higher-priced limit orders to artificially inflate prices.
In one case outlined by the FSS, a trader used API-driven orders from 5,000 won (about $3) to 10,000 won (about $6) to simulate trading activity before selling into rising prices as retail investors entered the market. In another case reported by FSS, a trader set a target price and repeatedly made offers to buy at a higher price to raise prices to that level.
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South Korea tightens enforcement due to regulatory loopholes
South Korean authorities have also decided to tighten fraud protection. On April 8, the Financial Services Commission (FSC) said inconsistent withdrawal-delay exemption rules allowed bad actors to move funds quickly, with exempted accounts accounting for a majority of voice phishing losses.
At the same time, enforcement efforts have faced legal constraints. On April 9, a South Korean court overturned a partial suspension of Upbit operator Dunamu, citing unclear rules and highlighting gaps in the regulatory framework.
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