South Korea is accelerating its crypto market supervision by shifting from manual investigations to AI-powered surveillance. The Financial Supervisory Service (FSS) is upgrading its Virtual Assets Intelligence System for Trading Analysis (VISTA) to automate the initial detection of suspicious activity, a move aimed at coping with the speed and scale of modern digital-asset trading. The upgrade, supported by funding through 2026, enables sliding-window analysis across overlapping time frames to flag abnormal patterns such as sudden volume spikes or atypical price movements. In tandem, regulators are planning to extend AI capabilities to identify networks of coordinated trading accounts and trace the sources of funds used in manipulation. Officials also explore proactive interventions, including potential temporary suspensions of transactions or payments, to curb illicit gains before they can be withdrawn.

Key takeaways

• The Financial Supervisory Service’s upgraded VISTA now performs the initial detection of suspicious trading using automated algorithms rather than relying solely on human investigators.
• A sliding-window grid search method segments trading data into overlapping time frames to identify abnormal patterns, such as unusual volume surges or abrupt price moves.
• Through 2026, the FSS plans to add AI tools capable of detecting networks of coordinated trading accounts and tracing the funding sources behind manipulation schemes.
• Regulators are weighing proactive interventions, including temporary suspensions of transactions or payments, to block illicit gains before withdrawal or laundering.
• The move signals a broader shift toward continuous, AI-assisted oversight in digital-asset markets to align crypto supervision with evolving market dynamics.

Market context: Link the story to broader crypto conditions (liquidity, risk sentiment, regulation, ETF flows, macro, or sector trends) WITHOUT inventing facts.

Why it matters

The shift to automated surveillance reflects regulators’ need to keep pace with the sheer volume and velocity of crypto trading. In markets where a single exchange can process thousands of trades in minutes, manual review struggles to keep up, creating gaps that manipulators may exploit. By automating the detection of irregular activity, authorities can flag suspect intervals with far greater speed and consistency, reducing the window during which illicit actors can operate unchecked. Yet, automation also raises questions about the balance between vigilance and overreach. As algorithms flag patterns that resemble manipulation, there is a risk of false positives that could disrupt legitimate trading activity if not carefully managed.

For market participants, the move toward AI-driven oversight could raise the bar for compliance. Exchanges and custodians will need to ensure data quality and interoperability so that automated systems can access comprehensive, timely information. Regulators’ increased reliance on machine learning models may also spur new governance practices around model validation, transparency, and accountability. The net effect could be a more resilient market environment where manipulative tactics are detected earlier, but with continued diligence to avoid unintended penalties on innocent actors.

Beyond crypto-specific implications, the initiative signals regulators’ intent to harmonize digital-asset oversight with traditional financial markets. Korea’s exploration of proactive intervention intersects with broader debates on supervisory tools, due-process safeguards, and the threshold for action in fast-moving markets. If Korea proves effective, other jurisdictions may adopt similar AI-enabled approaches, extending the reach of automated risk detection across asset classes and trading venues.

What to watch next

• Milestones in the AI upgrade rollout through 2026, including when specific detection modules for coordinated accounts and funding tracing become operation-ready.
• Details of the proposed proactive intervention mechanism, such as criteria, governance, and safeguards for temporary transaction suspensions.
• Results from internal tests demonstrating the accuracy and coverage of automated detection, including any externally verified validation.
• Regulatory guidance on cross-venue data sharing and the integration of AI surveillance with existing market surveillance frameworks.
• Any expansion of AI-based monitoring to other asset classes or to cross-border coordinated trading investigations.

Sources & verification

• Official statements or documentation from the Financial Supervisory Service detailing the VISTA upgrade and its automated detection capabilities.
• Technical briefings or regulator notes describing the sliding-window grid search approach used to scan trading data.
• Public announcements about funding or timelines for AI enhancements through 2026.
• Regulatory notices or policy discussions about a potential payment-suspension mechanism to curb illicit gains.
• Industry coverage on pump-and-dump groups and spoofing in crypto markets for context on monitoring challenges.

South Korea deploys AI-powered surveillance to tighten crypto market oversight

The Financial Supervisory Service’s upgrade to VISTA represents a deliberate shift from reactionary, case-by-case probes to proactive, continuous monitoring of digital-asset markets. The upgraded system can autonomously identify likely manipulation windows across the entire data set, a capability regulators say was not feasible with earlier, manually driven methods. In internal testing, the AI detected all known manipulation periods from completed investigations and also highlighted additional intervals that human analysts had previously missed. This progress is framed as a necessary response to the extraordinary pace and complexity of today’s crypto markets, where millions of transactions occur across dozens of tokens every hour.

Central to the upgrade is a sliding-window grid search, a methodological choice that allows the model to examine overlapping time segments of varying durations. Rather than requiring investigators to guess where misconduct might lie, the algorithm evaluates every potential sub-period for telltale signs—such as sudden price spikes followed by rapid reversals or unusual bursts in trading volume. By prioritizing high-risk windows, the system helps analysts focus on the most suspicious intervals, enabling faster, more targeted inquiries. One striking insight from industry observers is that in crypto markets, some manipulation can unfold in under five minutes, a time frame that challenges human monitoring but is well within the reach of automated systems.

The upgrade is more than a technical upgrade; it signals regulators’ intent to extend AI capabilities beyond detection to prevention and enforcement. Through 2026, the FSS plans to implement tools that map networks of trading accounts that operate in coordination—an important step in dismantling capital flows that underpin manipulation schemes. The regulator also aims to perform large-scale analyses of trading-related text across thousands of crypto assets, seeking to correlate promotional narratives with price movements and to understand how attention shocks translate into market risk. And by tracing the origin of funds used in manipulation, authorities hope to build stronger enforcement cases and curb the ability of bad actors to launder proceeds.

As with any AI-driven regime, the initiative faces practical and philosophical challenges. Regulators acknowledge that automated surveillance must be complemented by human oversight to address issues such as cross-venue manipulation and off-platform coordination, which may elude any single venue’s view. Regular evaluation is required to mitigate bias or drift in models and to avoid flagging legitimate activity. The plan explicitly states that AI tools are intended to support, not replace, investigators, reinforcing the role of experienced analysts in interpreting and acting on automated signals.

Beyond the Korean context, the effort echoes a broader transition in financial markets toward real-time surveillance that blends traditional risk controls with modern data science. The Korea Financial Services Commission has even discussed a broader governance framework for algorithmic trading that would apply across asset classes, coupling market surveillance with behavioral signals and automated risk scoring. The overarching objective is a more resilient system capable of identifying irregularities promptly, while maintaining due-process protections and avoiding overreach that could disrupt legitimate market activity.

As policymakers weigh the regulatory levers, observers will look for concrete demonstrations of how these AI tools perform in live markets. The integration of automated detection with proactive interventions—such as potential temporary suspensions of transactions tied to suspected manipulation—could reshape how traders approach liquidity, risk, and compliance. The evolving framework may also influence how other jurisdictions craft AI-enhanced surveillance, potentially accelerating a global shift toward more transparent and accountable crypto markets.

For readers seeking deeper context, related analyses on pump-and-dump groups and the use of spoofing in crypto trading are available here: pump-and-dump groups: are they legal? and how scammers use fake transaction simulation sites to steal crypto.

The crypto market will welcome tokens worth more than $321 million in the third week of February 2025. Major projects, including LayerZero (ZRO), YZY (YZY), and KAITO (KAITO), will release significant new token supplies. 

These unlocks could introduce market volatility and influence short-term price movements. So, here’s a breakdown of what to watch.

Sponsored

1. LayerZero (ZRO)

• Unlock Date: February 20
• Number of Tokens to be Unlocked: 25.71 million ZRO
• Released Supply: 429.96 million ZRO
• Total Supply: 1 billion ZRO

LayerZero is an interoperability protocol that connects different blockchains. Its primary goal is to facilitate seamless cross-chain communication. Thus, it enables decentralized applications (dApps) to interact across multiple blockchains without relying on traditional bridging models.

The team will unlock 25.71 million tokens on February 20, representing 5.98% of the released supply. Moreover, the supply is worth approximately $43.19 million.

LayerZero will award 13.42 million altcoins to strategic partners. Core contributors will get 10.63 million ZRO. Lastly, 1.67 million ZRO are for tokens repurchased by the team.

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2. YZY (YZY)

• Unlock Date: February 17
• Number of Tokens to be Unlocked: 62.5 million YZY
• Released Supply: 362.5 million YZY
• Total supply: 1 billion YZY

YZY is a cryptocurrency token associated with the rapper Ye (formerly known as Kanye West). It is positioned as part of the broader “YZY MONEY” ecosystem, which includes the YZY token, a payment platform called Ye Pay, and a physical YZY Card.

On February 17, YZY will unlock 62.5 million tokens worth around $20.34 million. The tokens represent 17.24% of the released supply. 

Sponsored

The team will allocate 50 million altcoins to Yeezy Investments LLC, Vesting 2. Moreover, it will direct 12.5 million tokens to  Yeezy Investments LLC, Vesting 1.

3. Kaito (KAITO)

• Unlock Date: February 20
• Number of Tokens to be Unlocked: 32.6 million KAITO
• Released Supply: 306.49 million KAITO
• Total Supply: 1 billion KAITO

Kaito is an artificial intelligence (AI)-powered Web3 information platform that aggregates and analyzes cryptocurrency market data from diverse sources like social media, governance forums, news, and more. The KAITO token serves as a medium of exchange, governance tool, and incentive mechanism within the platform. 

Sponsored

On February 20, the team will unlock 32.6 million tokens, representing 10.64% of the current released supply. The supply is worth approximately $10.08 million.

The team will split the unlocked tokens five ways. The foundation will receive 1.19 million tokens. Core contributions will get 6.94 million tokens. Furthermore, early backers will receive 2.31 million KAITO.

Finally, the team will direct 7.16 million KAITO for ecosystem and network growth and 15 million tokens for long-term creator incentives.

In addition to these, other prominent unlocks that investors can look out for in the third week of February include ZKsync (ZK), Solv Protocol (SOLV), ApeCoin (APE), and more, contributing to the overall market-wide releases.

Key points:

• Bitcoin remains under pressure as bears are selling on rallies near the $74,508 resistance

• The bears are mounting a solid defense in several major altcoins at higher levels, indicating a negative sentiment.

Bitcoin (BTC) has started the new week on a cautious note as bulls attempt to maintain the price above $67,500. Investors are not rushing in to buy the dip, as seen from the $133.3 million in outflows from BTC exchange-traded products last week. The total outflows from crypto investment products have risen to $3.8 billion over the past four weeks, according to a CoinShares update on Monday.

If BTC ends the month below $79,500, it will record its first-ever consecutive negative monthly closing in January and February. With more than 22% loss, BTC is staring at its worst first-quarter performance since the 49.7% loss in 2018, per CoinGlass data. 

Despite BTC’s weak performance and uncertain near-term direction, Strategy co-founder Michael Saylor indicated in a post on X that the company is buying more BTC. That will be Strategy’s 99th BTC transaction, showing their long-term bullish view remains intact.

Could BTC and the major altcoins defend the support levels and start a strong relief rally? Let’s analyze the charts of the top 10 cryptocurrencies to find out. 

S&P 500 Index price prediction

The S&P 500 Index (SPX) is witnessing a tough battle between the bulls and the bears at the support line of the ascending channel pattern.

The moving averages are on the verge of a bearish crossover, and the relative strength index (RSI) is in the negative territory, indicating that the bears are making a comeback. The index may start a deeper correction to 6,720 and then to solid support at 6,550 if the price breaks below the 6,780 level.

Buyers will have to propel the price above the 7,002 level to retain control. If they manage to do that, the index may resume its uptrend and surge toward the 7,290 level.

US Dollar Index price prediction

The US Dollar Index (DXY) has been trading below the moving averages, but the bears have failed to challenge the 96.21 to 95.55 support zone.

The bulls will try to strengthen their position by pushing the price above the moving averages. If they can pull it off, the index may rally to 99.49 and then to the overhead resistance at 100.54.

Contrarily, if the price turns down sharply from the moving averages, it suggests that the bears continue to sell on rallies. The index may the next leg of the downtrend on a close below the 95.55 support.

Bitcoin price prediction

Sellers are attempting to halt BTC’s recovery near $71,000, indicating that the bears remain sellers on rallies.

The sellers will have to pull the price below the $65,000 level to remain in command. The BTC/USDT pair may then retest the critical $60,000 level. If the $60,000 support cracks, the next stop is likely to be $52,500.

Buyers will have to drive the Bitcoin price above the breakdown level of $74,508 to signal that the bearish momentum is weakening. The pair may then surge toward the 50-day SMA ($83,910), where the bears are expected to mount a strong defense.

Ether price prediction

Ether (ETH) once again turned down from the $2,111 level on Sunday, indicating that the bears are fiercely defending the level.

Sellers will attempt to pull the price below the immediate support at $1,897. If they do that, the ETH/USDT pair may drop to the $1,750 level. Buyers are expected to defend the $1,750 level with all their might, as a close below it may sink the pair to $1,537.

Instead, if the Ether price turns up and breaks above the 20-day EMA ($2,221), it signals that the selling pressure is reducing. The pair may then rally to the 50-day SMA ($2,744).

BNB price prediction

BNB’s (BNB) relief rally fizzled out at $642 on Sunday, indicating that the bears are selling on every minor rise.

The bears will attempt to increase their hold by pulling the BNB price below the $570 level. If they manage to do that, the BNB/USDT pair may extend its decline to psychological support at $500.

The bulls will have to drive the price above the 20-day EMA ($686) to suggest that the bears are losing their grip. The pair may then climb to $730 and subsequently to the 50-day SMA ($817).

XRP price prediction

XRP (XRP) turned up from the support line of the descending channel pattern on Friday and pierced the 20-day EMA ($1.53) on Sunday.

However, the bears successfully defended the breakdown level of $1.61 and pulled the XRP price back below the 20-day EMA. The bulls are unlikely to give up easily and will make another attempt to clear the $1.61 level. 

If they succeed, the XRP/USDT pair may rise to the 50-day SMA ($1.81). Such a move suggests that the pair may remain inside the channel for some more time.

Sellers will have to tug the price below the support line to gain the upper hand. The pair may then retest the Feb. 6 low of $1.11.

Solana price prediction

Buyers are attempting to push Solana (SOL) back above the breakdown level of $95, but the bears have held their ground.

The Solana price may trade inside the $76 to $95 range for some time. Such a move increases the likelihood of an upside breakout. The SOL/USDT pair may then rally toward $117.

This positive view will be negated in the near term if the price turns down and breaks below the $76 support. The pair may then retest the Feb. 6 low of $67, where the buyers are expected to step in.

Related: $75K or bearish ‘regime shift?’ Five things to know in Bitcoin this week

Dogecoin price prediction

Dogecoin (DOGE) turned down from the breakdown level of $0.12 on Sunday, indicating that the bears are defending the level.

The 20-day EMA ($0.10) is flattening out, and the RSI is just below the midpoint, signaling a possible range-bound action in the near term. The DOGE/USDT pair may swing between $0.08 and $0.12 for a few days.

Buyers will gain the upper hand on a close above the $0.12 resistance. That opens the doors for a rally to $0.16. Alternatively, the advantage will tilt in favor of the bears on a close below $0.08. The Dogecoin price may then slump to $0.06.

Cardano price prediction

Cardano’s (ADA) relief rally reached the 20-day EMA ($0.29) on Saturday, which is expected to act as a stiff hurdle. 

If the bulls do not give up much ground to the bears, the possibility of a break above the 20-day EMA increases. That suggests the ADA/USDT pair may remain inside the descending channel for some more time. A break and close above the downtrend line signals a potential short-term trend change.

Sellers will have to pull the Cardano price below the support line to extend the downward move toward the next support at $0.20.

Bitcoin Cash price prediction

Bitcoin Cash (BCH) surged above the 20-day EMA ($544) on Friday, indicating that the bears are losing their grip.

The recovery is facing resistance at the 50-day SMA ($578), but a positive sign is that the bulls have not allowed the Bitcoin Cash price to slip back below the 20-day EMA. That increases the likelihood of the continuation of the relief rally. If buyers pierce the 50-day SMA, the BCH/USDT pair may reach $600.

Sellers will have to swiftly yank the price below the 20-day EMA to apply pressure on the bulls. The pair may then skid to the $500 support.