Is Bithumb’s trading volume manipulation either a fraud or a violation of the financial laws in Korea? Who will investigate the alleged manipulation?
As the cryptocurrency is not subject to any financial rules and laws in South Korea, the police and the prosecution, not the financial regulators, must investigate the manipulation case.
There are a few reported cases of cryptocurrency scams, and many investors sustained financial damage, The police and the prosecution have taken charge of the investigation.
Eleven lawmakers of both the ruling and the opposition parties have submitted a bill to prevent the manipulation of cryptocurrency trading last February. However, the bill is still pending at the National Assembly.
The U.S. NASDAQ has announced that it has developed a tool to detect manipulative acts in cryptocurrency exchanges. Its early detection tool alerts regulators against manipulative schemes like weather forecasts. It is artificial intelligence (AI)-based detection tool.
The U.S. position on cryptocurrencies is clear. It will leave everything to the market, but it will crack down on price manipulating, internal trading, money laundering, and crime funding,
However, South Korea financial regulators have maintained a position that cryptocurrency trading is not under the scope of its radar as there is no rule or law on regulating these cyber currencies.
