Overview
- The Financial Services Commission is reviewing a payment-suspension system that could block crypto transactions before suspected manipulators move or launder funds.
- The approach would mirror stock market tools enabled by April 2025 Capital Markets Act changes that allow pre-court freezes for unfair trading.
- Under current procedures, freezes often require court warrants, a delay regulators say lets suspects shift assets to private wallets or use tactics like front-running and automated wash trading.
- Officials discussed applying these powers in a closed-door November meeting held as authorities reviewed an early manipulation case under the amended capital markets rules.
- Parallel measures under consideration include imposing full liability on exchanges for hacks or system failures and the tax agency’s warning that assets in cold wallets can be seized in investigations.