South Korea Considers Preventive Freezing Mechanism for Crypto Transactions

According to BlockBeats, South Korea's financial regulators are evaluating the introduction of a 'preventive freezing' mechanism. This would allow the temporary freezing of accounts involved in suspected price manipulation of cryptocurrency transactions before they are cashed out. The Financial Services Commission (FSC) is exploring a trading suspension system to align crypto enforcement standards with those of the stock market, addressing current delays that require court orders. This discussion coincides with South Korea's advancement into the second phase of crypto legislation, which may focus on stablecoins and market manipulation. If implemented, the regulatory approach would shift from post-incident accountability to real-time intervention. This would enhance scrutiny of high-frequency, automated trading and short-term abnormal fluctuations, significantly tightening the market enforcement environment.