The Financial Supervisory Service said it will strengthen its monitoring system for unfair virtual asset transactions by using an artificial intelligence (AI) system.
The Financial Supervisory Service (FSS) said on the 3rd that it has upgraded its investigation system for unfair virtual asset transactions based on AI-driven analytics. The core of the effort is building a real-time monitoring system and developing a function that automatically identifies accounts suspected of price manipulation.
The virtual asset market trades 24 hours a day and is highly volatile. Recently, as automated trading using APIs (application programming interfaces) has increased, methods of unfair transactions have also become more sophisticated. Because investigators must check massive trading data as well as wallet transfer histories, the process takes considerable time.
The newly built monitoring system uses public APIs from domestic and overseas exchanges to collect and analyze in real time not only prices but also order books, execution data, and market alerts. The monitoring targets are Korea's five won-based exchanges—Upbit, Bithumb, GOPAX, Coinone, and Korbit—and three overseas exchanges—Binance Holdings Ltd., Coinbase, and OKX.
The Financial Supervisory Service (FSS) also plans in the first half to expand a function that captures tokens whose prices surge during specific time frames or jump under certain conditions. The aim is to find tokens where unfair transactions are attempted at an early stage.
A new function has also been developed to automatically detect clusters of accounts used for price manipulation. Previously, people manually analyzed unfair transactions, but going forward, the system will automatically analyze them, group accounts that show similar behavior, and identify them as suspected account clusters.
The Financial Supervisory Service (FSS) said, "We will continue to enhance our response system to unfair transactions by gradually expanding AI-based analytics," adding, "We will protect virtual asset users and establish a sound market order."