South Korea establishes task force to monitor crypto exchanges, promising that better regulation will contribute to the robustness of the cryptocurrency market.
26 January, AtoZForex – South Korean financial authorities have cooperated with Korean Financial Intelligence Unit (KFIU) in order to create a special task force to monitor cryptocurrency exchanges. The task force will also be responsible for ensuring cryptocurrency businesses’ compliance with the regulatory frameworks in place.
South Korea Establishes Task Force to Monitor Crypto Exchanges
Yesterday’s announcement from South Korea also mentioned that task force will cooperate with domestic cryptocurrency exchange to make sure that there are no money laundering and fraudulent activities using cryptocurrencies in the local market.
South Korean financial officials also will require six primary South Korean banks that are supporting cryptocurrency exchanges to report to KFIU in case of any suspicious activity. Moreover, local banks are anticipated to file regular reports to the KFIU on suspicious trading. These banks include Shinhan Bank, Nonghyup, IKB, and Woori Bank.
South Korea Cryptocurrency Regulations
Earlier this year, the South Korean government has officially dismantled the rumours that it is going to completely ban cryptocurrency trading across the country. However, the government also made it clear that it intends to put significant efforts into regulating the cryptocurrency market in a proper fashion.
The officials also plan to provide a more robust infrastructure to cryptocurrency investors in the country.
Just last week, investors feared that banks would stop the money flow into the market by disabling bank accounts. However, six major South Korean banks have backed local cryptocurrency exchanges. Following this development, the KFIU has started to regulate the market.
It also appears that South Korea government has begun to see cryptocurrency businesses as legal financial service providers.
For some time now, numerous South Korean investors, in both traditional and cryptocurrency markets, have been expressing negativity in regards to the case of South Korean officials insider trading. Reportedly, some of the South Korean officials have been caught insider trading.
The online reports state that they have sold all their cryptocurrency holdings prior to when regulators have announced cryptocurrency regulatory changes. Thus, it appears that some of the officials have profited big time.
During the meeting of the National Assembly’s Committee this Thursday, the Financial Supervisory Service (FSS) has confirmed that some of the staff members invested in cryptocurrencies and sold them before the government announced the regulatory initiative, according to the local media. The reports also quote a right-wing party lawmaker stating:
“There is intelligence that FSS staff sold all of the virtual currency that they invested in just prior to the announcement of the government’s measures.”
The FSS Governor Choi Heung-sik has reportedly admitted the fact:
“We have confirmed the intelligence.”
The Chief of the Office of Prime Minister, Hong Nam-ki, added:
“We have confirmed that some public officials have done such an act.”
The local media reports further went on stating that Korean Public Service Ethics Act “strictly restricts the stock trading of public officials in order to prevent misuse of internal information.”
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