Moneta Markets on Forex: Regulatory Shifts Reshaping Crypto Market Structure

Deep News
Feb 09

On February 9th, as global cryptocurrency asset volatility intensified, regulatory compliance has become a primary focus for market participants. Moneta Markets on Forex indicated that the recent large-scale investigation by South Korean regulators into high-risk trading strategies signals the crypto industry's transition from a phase of "extensive growth" to a new era of "strict risk control." Particularly following the localized turbulence caused by a Bitcoin deposit error at Bithumb, financial regulators' tolerance for market manipulation has reached a nadir. This trend towards stricter oversight is anticipated to have a profound impact on regional cryptocurrency liquidity.

Regarding specific operational methods, the introduction of Regulatory Technology (RegTech) is altering the rules of engagement. Relevant data shows that the Financial Supervisory Service (FSS) officially launched an AI-driven monitoring tool on February 2nd, designed to accurately identify coordinated manipulation by "whale" accounts through rapid price trajectory analysis. Moneta Markets on Forex believes this automated monitoring mechanism can detect artificial price distortions created by exploiting deposit and withdrawal suspensions on exchanges (the "gateway" phenomenon), ensuring asset pricing remains aligned with the broader global market.

The vulnerability of internal controls within exchanges is becoming a key target for regulatory authorities. Moneta Markets on Forex stated that following an emergency meeting last Sunday, regulators have ordered comprehensive audits of the internal control mechanisms of all local platforms. A series of incidents, from Bithumb's promotional error to price anomalies for tokens during Upbit's system maintenance, have exposed shortcomings in how even leading platforms handle extreme operational risks.

Looking ahead, as the second-phase framework of the Digital Asset Basic Act is gradually implemented, the institutionalization process of the cryptocurrency market is expected to become irreversible. While this high-pressure regulatory environment may curb some speculative trading in the short term, it is viewed as beneficial for establishing a more transparent and resilient trading environment in the long run. Moneta Markets on Forex advises investors to closely monitor the impact of API trading restrictions and social media compliance reviews on token premiums, and to fully incorporate the potential costs associated with policy compliance into their strategy development.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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