South Korea’s FSS launches AI system to monitor crypto market manipulation in real time
South Korea’s Financial Supervisory Service (FSS) launched an AI-powered real-time monitoring platform on Aug. 20 to detect unfair trading and price manipulation in crypto markets. The system uses generative AI and machine learning to identify patterns such as “racing horse” and “cage” manipulation, while also scanning YouTube, online forums and private chat groups for front-running, false information and coordinated retail-buying schemes. FSS investigators will review AI-generated reports before deciding whether to open enforcement actions. Markus Levin, co-founder of XYO, said regulatory AI may face issues including data accuracy, operational boundaries and false positives. The agency also plans to add cross-exchange fund-flow tracking and on-chain monitoring.








