South Korea's Financial Supervisory Service (FSS) plans to tighten its oversight of the cryptocurrency market in response to recent incidents that raised concerns about market integrity and consumer safety. The FSS will focus on high-risk practices, including market manipulation by large traders and tactics that inflate token prices on exchanges where withdrawals have been suspended. Specific practices under scrutiny include price-pumping schemes and the dissemination of false information via social media. This regulatory shift follows a significant incident at Bithumb, the country’s second-largest crypto exchange, where a promotional event led to the mistaken transfer of 620,000 BTC—worth about $44 billion—to various users. Bithumb managed to recover 99.7% of the erroneously sent bitcoins. Alongside these measures, the FSS has assembled a task force to prepare for the Digital Asset Basic Act, which aims to establish a regulatory framework for token issuance and listing support for digital asset service providers and stablecoin issuers. The legislation's final version is expected by the end of the first quarter of 2026.