South Korea Deploys AI Enabled System To Detect Crypto Market Manipulation In Real Time

South Korea’s financial regulator has taken a major step toward modernizing oversight of digital asset markets by rolling out an artificial intelligence system designed to detect and analyze unfair trading practices in real time.

The Financial Supervisory Service (FSS) announced on August 20, 2026, that it had independently developed and deployed an AI-powered surveillance framework combining generative AI models with machine learning algorithms.

The initiative aims to address the challenges of monitoring thousands of tokens that trade around the clock across multiple domestic and international exchanges, a task that has strained limited investigative resources.

The new system builds on earlier AI tools introduced by the agency earlier in 2026.

In January, regulators created an algorithm capable of automatically flagging suspicious order activity and trading windows linked to potential price manipulation.

By April, they added functionality to identify clusters of connected accounts that may be working together.

The latest expansion integrates AI across the full surveillance pipeline, covering initial detection, deeper analysis, and preliminary assessment of whether formal probes are warranted.