South Korean regulators widen probe of cryptocurrency exchanges

Cornelia Mascio
Mag 17, 2018

The Bitcoin price (BTC/USD) has stayed below the $9,000 mark in the past couple of session, as market sentiment has remained dampened following last week's news that South Korea's largest cryptocurrency exchange, Upbit, had been raided by local prosecutors.

As reported by The Korea Times, South Korea's Financial Services Commission (FSC) is broadening the scope of its probe into domestic cryptocurrency exchange operators while requesting worldwide coordination in regards to cryptocurrency and digital asset regulation.

As reported in The Korea Times on May 14, 2018, the country's central financial authority, the Financial Services Commision (FSC), wishes to "coordinate" policies about crypto-assets with global regulatory bodies. So far, however, up to just 30 percent of all crypto accounts have been converted into real name accounts.

Officials recently raided the country's leading crypto exchange UPbit, which is now being investigated by police. There are only up to six banks in South Korean have the expertise to issue out real name accounts. It is aimed especially at the use of corporate accounts which they believe can lead to money laundering. Nonetheless, not all accounts at these exchanges have been converted into real-name ones. Regulators are suspicious with one of the largest cryptocurrency exchange by volume Upbit, therefore leading to an investigation against them.

For the uninitiated - while the FSC regulates and controls financial policies, it is the FSS which supervises and examines financial institutions.

One of the modes of widening the net has been done via a collaboration with other countries. Our latest finding shows that the domestic exchange faked its balance sheets and deceived investors. Being one of the most active markets in the cryptocurrency world, South Korea has also been dealing with other concerns from officials. "The FSC is checking UPbit's computer system with prosecutors and the FSS to audit the exchange's virtual currency holdings", said another official.

Suk-heun states that regulations governing blockchain projects and cryptocurrency trading shall be eased, as cryptocurrencies exhibit "some positive aspects".

What do you think of the Korean regulators widening probe on crypto exchanges?

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE