South Korean regulators introduce upgraded AI article detection plan to enhance the identification of market manipulation in the crypto sector

South Korea’s Financial Supervisory Service recently announced a major upgrade to its virtual asset market monitoring system, officially adopting a new generation AI algorithm to identify abnormal manipulation behaviors in cryptocurrency trading. According to NS3 reports, this intelligent system has integrated advanced sliding window grid search technology, enabling more precise autonomous detection of price manipulation periods and trading patterns.

How the New AI Detection Algorithm Strengthens Market Regulation

Traditional market regulation methods often rely on manual review, which is inefficient and prone to oversight. The AI article detection system launched by South Korea’s Financial Supervisory Service employs sliding window technology, allowing the algorithm to automatically scan vast amounts of trading data and promptly identify price fluctuation zones exhibiting abnormal characteristics. Through this automation, regulators can more quickly pinpoint suspicious market manipulation activities, significantly improving detection accuracy and coverage.

This technological upgrade fills the gaps of traditional regulatory approaches, especially in the unique environment of the 24/7 cryptocurrency market. Any attempt to manipulate prices through coordinated trading, wash trading, or other means becomes more difficult to evade the “eye” of the AI system.

Future Plans Focused on Coordinated Trading Networks and Fund Tracing

In addition to current functional enhancements, the South Korean Financial Supervisory Service has also announced further development plans. The upcoming system upgrade will focus on identifying coordinated trading networks—organized manipulation activities involving multiple linked accounts. Simultaneously, this AI detection framework will be expanded to trace the flow of manipulated funds behind thousands of crypto assets, helping regulators gain a more comprehensive understanding of the market’s black hands and their operational patterns.

This means that even if manipulators attempt to evade detection through dispersed accounts or obscuring fund sources, it will be difficult to escape regulatory tracking. South Korea’s exploration in this area also provides a new reference for the global effort to standardize and regulate the crypto market.