South Korea's FSS Launches AI Platform to Monitor Crypto Market Manipulation

South Korea's Financial Supervisory Service (FSS) launched an AI real-time monitoring platform on August 20 to detect unfair trading and price manipulation in the crypto market. According to Odaily, the system uses generative AI and machine learning to track patterns such as spoofing and layering, while also monitoring wash trading, group trading, front-running, false information, and coordinated retail buying across YouTube, online forums, and private chat groups.FSS investigators will review AI-generated reports before deciding whether to begin enforcement action. XYO co-founder Markus Levin said regulatory AI may face risks related to data accuracy, operational boundaries, and false positives. The FSS later plans to add cross-exchange fund flow tracking tools and monitor on-chain trading activity.