South Korea’s authorities is widening its probe on cryptocurrency exchanges, notably the use of company accounts which the regulators say can result in cash laundering. This announcement follows the prosecutors launching an investigation on the nation’s largest crypto trade, Upbit.
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Widening the Crypto Probe
South Korea’s prime monetary regulators are teaming up with prosecutors to widen their investigation of home cryptocurrency trade operators. An official of the Monetary Service Fee (FSC) was quoted by the Korea Occasions on Sunday:
Following a request by the Monetary Supervisory Service (FSS) and the prosecution to handle rising anti-money laundering compliance considerations and doable abuse of cryptocurrencies in cash laundering and fraud, the FSC is trying into exchanges’ company accounts opened in native banks.
The use of company accounts for crypto transactions ought to have been discontinued when the federal government launched the real-name system on the finish of January. Nevertheless, solely 30% of all crypto accounts have been transformed into real-name ones up to now.
The six banks which have the flexibility to situation real-name accounts have chosen to solely service the nation’s largest crypto exchanges: Upbit, Bithumb, Coinone, and Korbit. Nonetheless, not all accounts at these exchanges have been transformed into real-name ones. As well as, all small and medium-sized exchanges proceed to make use of company accounts for crypto transactions.
The regulators say that the use of company accounts can result in fraud similar to not too long ago seen with Coinnest whose CEO was charged with embezzlement. The biggest Korean crypto trade by quantity, Upbit, can also be at the moment underneath investigation regardless that banks have been changing its accounts to real-name ones.
Collaborating with Different International locations
South Korea has been discussing a collaboration with different nations on cryptocurrency laws. At a latest Worldwide Group of Securities Commissions (IOSCO) Board of Administrators and Annual Normal Assembly held in Hungary, FSC Vice Chairman Kim Yong-beom mentioned cryptocurrency points with main nationwide supervisory our bodies. The necessity for IOSCO to cooperate on cryptocurrency and ICO laws was pressured on the assembly.
An official of the FSC was quoted by the Korea Occasions saying:
The FSC is collaborating with authorities in different nations. Our newest findings present that the home trade faked its steadiness sheets and deceived traders. The FSC is checking Upbit’s laptop system with prosecutors and the FSS to audit the trade’s digital forex holdings.
In the meantime, the brand new FSS governor Yoon Suk-heun not too long ago indicated that he’ll look into easing laws on home cryptocurrency buying and selling, citing that “there are some optimistic features to cryptocurrencies.”
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Photographs courtesy of Shutterstock and the Korean authorities.
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