South Korean authorities proceed to send mixed signals spil the Financial Services Commission broadens the scope of its probe into domestic cryptocurrency exchanges with Bithumb being the “primary target.”
Spil 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 te regards to cryptocurrency and digital asset regulation.
Stated an official on Sunday:
Following a request by the Financial Supervisory Service (FSS) and the prosecution to address growing anti-money laundering compliance concerns and possible manhandle of cryptocurrencies ter money laundering and fraud, the FSC is looking into exchanges’ corporate accounts opened ter locorregional banks.
The official also noted that Bithumb indeed emerges to be one of the FSC’s primary targets ter a broader investigation, tho’ declined to provide further details. However, another official added that UPbit is also under investigation, stating:
The FSC is collaborating with authorities te other countries. Our latest findings voorstelling that the domestic exchange faked its cálculo sheets and deceived investors. The FSC is checking UPbit’s laptop system with prosecutors and the FSS to audit the exchange’s imaginario currency holdings.
The increasingly rigorous stance seemingly contradicts fresh FSS governor Yoon Suk-heun’s previously reported claims that he is programma to ease regulations surrounding domestic cryptocurrency trading, previously stating, “there are some positive aspects to cryptocurrencies.”
Spil noted by The Korea Times, the two organizations work together but serve different functions. The FSC is te charge of policy regulation, while the FSS examines and supervises financial institutions. On the subject of cryptocurrency regulation, however, it’s becoming increasingly more clear that there is some disagreement inbetween the two organizations.
Nevertheless, one FSC official claimed the two share a common objective, stating:
It’s untrue that the FSC has a different [stance than] that [of] the FSS regarding cryptocurrencies.
FSC Vice Chairman Kim Yong-beom also claimed the regulatory authority isn’t oblivious to the blockchain’s disruptive effects ter the world of traditional banking and financial services. Spil such, he claims to be seeking the most effective regulation possible, stating:
Regarding the unique nature of cryptocurrencies, each country has its own assessment. That means an international discussion and cooperation among regulators to come up with policies on crypto-assets is necessary. Wij are observing a constant development of blockchain technology thanks to its greater accessibility and efficiency. Because this technology has the potential to wiggle up today’s regulations on securities, regulators have to react to such a looming challenge.
What do you think about the current regulatory uncertainty ter South Korea? Do you think the situation is causing unnecessary FUD ter the cryptocurrency market? Let us know ter the comments below!
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