- ZK surged nearly 1,000% on Upbit in three hours, rising from about 33 KRW to 350 KRW.
- South Korea’s Financial Supervisory Service began monitoring ZK trading after the sharp price reversal.
- Upbit is cooperating with regulators by providing trade data during the ongoing review.
South Korea’s Financial Supervisory Service is monitoring trading activity for ZK tokens after an extreme price surge on Upbit.
The token rose nearly 1,000 percent within three hours on February 1. Prices jumped from about 33 KRW to 350 KRW, then quickly reversed. Authorities are now reviewing market behavior during the sharp move.
Regulator Monitors Abnormal ZK Price Movement
The Financial Supervisory Service confirmed it is observing ZK trading activity on Upbit. The exchange is South Korea’s largest digital asset platform by volume. The review follows sudden price volatility that raised market surveillance alerts.
Officials are assessing whether trading patterns breached existing market rules. The review focuses on order flow, liquidity changes, and transaction timing. Authorities have not announced enforcement actions at this stage.
A spokesperson familiar with the process said monitoring is standard after extreme price moves. The official noted that sharp volatility can trigger automatic reviews. No conclusion has been shared so far.
ZK Token Surges and Quickly Reverses on Upbit
ZK began trading near 33 KRW before a rapid rise early on February 1. The price climbed to around 350 KRW in under three hours. Trading volume increased sharply during the move.
Soon after reaching the peak, the price fell back toward earlier levels. The decline erased most gains within a short period. Market data showed reduced buy orders after the surge.
Such rapid reversals are often linked to low liquidity conditions. They can also occur during concentrated trading activity. Authorities are reviewing whether disclosures or market signals played a role.
Upbit and Market Oversight Framework
Upbit operates under South Korea’s digital asset regulations. Exchanges must monitor abnormal trading and report suspicious activity. They also cooperate with regulators during reviews.
The exchange has not issued a public statement on the ZK movement. Under current rules, platforms provide data when requested. This includes order books, trade records, and wallet activity.
South Korea has increased oversight of crypto markets in recent years. Regulators focus on investor protection and fair trading. Monitoring unusual price behavior remains a core part of that effort.
Broader Context of Crypto Market Surveillance
The review comes amid heightened attention to token volatility. Regulators track sudden price movements across listed assets. This approach aims to detect manipulation risks early.
ZK remains listed and tradable on Upbit during the review. No trading restrictions have been announced. Authorities continue to gather and analyze market data.
The Financial Supervisory Service said monitoring will continue as needed. Further updates may follow if findings require action. For now, the review remains ongoing.
Source: https://www.livebitcoinnews.com/south-korea-flags-zk-after-1000-upbit-price-explosion/
