PiCK
"Tightening reviews of crypto price manipulation… doubling private-sector members on the Virtual Asset Market Investigation Review Committee"
Summary
- The Financial Services Commission said it will strengthen the monitoring and sanctions framework against unfair trading such as price manipulation by increasing the number of private-sector members on the Virtual Asset Market Investigation Review Committee from five to 10.
- The revision says the committee will create a pool of virtual-asset experts and introduce a method of incorporating opinions from appropriate specialists depending on the nature of each case.
- It said it will delete the rule that increased administrative penalties when violations involved three or more virtual-asset issues, and refine the system so sanctions are determined by a comprehensive assessment of the scale of the violation and its market impact.
Forecast Trend Report by Period
The body that reviews unfair trading—such as price manipulation—in the virtual asset (cryptocurrency) market is expected to be expanded. Financial authorities are moving to strengthen the monitoring and sanctions framework by increasing the number of private-sector members on the relevant committee.
According to the industry on the 10th, the Financial Services Commission (FSC) on the previous day issued a notice of a planned rule change to the "partial revision notice for the Regulations on Virtual Asset Market Investigation". The key of the revision is to increase the number of private-sector members of the Virtual Asset Market Investigation Review Committee (VAMIRC) from the current five to 10. The committee reviews proposed measures in cases of unfair trading in virtual assets, including price manipulation and fraudulent transactions.
Under the procedure, the Financial Supervisory Service’s Virtual Asset Investigation Bureau investigates a case, after which the committee reviews the proposed actions. The final level of sanctions is then confirmed through an FSC resolution.
The authorities also plan to introduce a system to form a pool of virtual-asset experts within the committee and reflect opinions from suitable specialists depending on the nature of each case. However, the number of private-sector members who actually attend meetings will be operated at around five, the same as before.
The revision also includes adjustments to some standards for sanctions against unfair trading. Until now, rules required tougher measures and higher administrative penalties when a violation involved three or more virtual-asset issues, but the revision deletes that provision.
The move is seen as an effort to refine the system so that sanctions are determined by comprehensively considering the scale of violations and their impact on the market, rather than by the number of issues involved.
The revision is expected to be finalized after a public comment process and other procedures.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
