April 27, 2021 | AtoZ Markets – The Financial Services Commission of South Korea (FSC) has demanded its employees who own cryptocurrencies to submit reports on investments in digital assets by May 7, according to Yonhap News Agency.
FSC Chairman Eun Sung-soo said that a report on the ownership of cryptocurrencies must be provided by officials of the department who study virtual currencies, are responsible for developing and enforcing laws on digital currencies, as well as those who interact with cryptocurrency exchanges.
Note that investment by officials in cryptocurrencies is not regulated in South Korea, unlike investments in traditional financial products. FSC decided to tighten control over this area in order to prevent the possibility of cryptocurrency speculation on the part of its employees.
Read also: South Korea to Fine Crypto Exchanges for Unreported Suspicious Transactions
They are prohibited from making investments using information that they received before the public due to their privileged position. In addition, Sang-su called digital asset trading risky due to the high volatility of cryptocurrencies. He noted the "unhealthy interest" of the younger generation in cryptocurrencies, and urged them to "get off the wrong path."
Sang-su also reached out to the older generation, advising them not to trade cryptocurrencies so as not to set a bad example for the younger generation. Naturally, after this statement, Sang-su was heavily criticized from both the cryptocurrency community and local citizens. 130,000 South Koreans have signed an online petition demanding that Sang-su resign.
The petition states the following:
“Sang-su is hypocritical when she reads morality to hardworking young people who face great difficulty in acquiring their own home, let alone any financial assets. Over the past few years, the value of real estate owned by San-su has increased significantly. Therefore, he has no right to indicate whether cryptocurrencies are for us - a boon or a threat."
As a reminder, last week South Korean regulators decided to join forces to fight illegal cryptocurrency transactions. In addition, the South Korean Internal Revenue Service recently confiscated about $22 million worth of cryptocurrencies from Seoul traders and companies for tax evasion.
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